Suppose that Intel currently is selling at $50 per share. The rate on margin loan is 8%. Investor A purchased 100 shares using 60% margin. Investor B sold 100 shares using 60% margin. The maintenance margin is 40%.

1. Calculate the margin call price for Investor A

2. Calculate the margin call price for Investor B

                          Year 1                             Year 2

                 Quantity     Price          Quantity    Price

Oranges      100             $5                 150            $5

Pears           100             $3                   75            $4

a. What is the growth rate of constant-dollar real GDP using year 1 as the base year?

b. What is the growth rate of constant-dollar real GDP using year 2 as the base year?

1. You operate in an Imperfectly Competitive market where demand for you product is given by: P= 100 - 0.05Q. What Price output combination would maximize your profit?

2. What would happen to your answer in #1 if entry made consumers more senstitive to your price and your demand changed to: P = 100 - 0.1Q?

4 years ago you purchased a 12 year maturity, 4.7% coupon annual pay bond at a price of $90 per $100 of face value. Shortly after you purchased the bond, yields changed to 4.08%. If you sell the bond today at a price of $106 per $100 of face value, what is your annualized holding period return?

1. Alkaptonuria is an uncommon autosomal recessive condition. Sara and James had never heard of alkaptonuria, and were shocked when their first child was born with the condition. Sara’s sister, Mary, and her husband, Frank, are also planning to have a family. Mary and Frank are concerned about the possibility of alkaptonuria affecting their children. The four adults (Sara, James, Mary, and Frank) seek the advice of a neighbor who is a retired physician. After discussing the family histories, the neighbour says, “I never took genetics, but I know that Sara and James must be carriers of this recessive condition. Since their first child has the condition, there is a very low chance that the next child will have it, because the odds of having two children with a recessive condition are very low. Mary and Frank have no chance of having a child with alkaptonuria, because Frank has no history of the condition.” The two couples each have a baby, and bothbabies have alkaptonuria.

1. What are the genotypes of the four adults?
2. What was the incorrect information given to Sara and James, and what is the correct information that they should have been provided?
3. What was the incorrect information given to Mary and Frank, and what is the correct information that they should have been provided?

What price do farmers get for their watermelon crops? In the third week of July, a random sample of 41 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $1.92 per 100 pounds.

(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)

Jane’s current income is $200, the price of food is $4 and the price of all other goods is $1. The government gives Jane $100 in food stamps. Draw her budget line. Draw a set of indifference curves that show that Jane would not care whether she receives $100 in cash or $100 in food stamps. Now a black market developes where Jane can trade $1 of food stamps for $.50 in cash. Draw Jane’s new budget line. Will she participate in the black market? Explain your answer.

Estimates of the marginal cost of Daraprim are $100 for a 100 pill bottle. If Turing Pharmaceuticals charged $75,000 per bottle, what is the elasticity of demand that Turing believe it faced? A spreadsheet to support answer if possible and simple analysis for answer.

1. Suppose that the FDA does not regulate Imprimis and allows its drug to immediately compete with Daraprim. Under Cournot competition and the assumption that the competitor faces the same marginal cost of $100 / bottle, what is the profit maximizing market price of the drug?
2. Should Martin Shkreli lower the price for Daraprim?

Estimates of the marginal cost of Daraprim are $100 for a 100 pill bottle. If Turing Pharmaceuticals charged $75,000 per bottle, what is the elasticity of demand that Turing believe it faced? Suppose that the FDA does not regulate Imprimis and allows its drug to immediately compete with Daraprim. Under Cournot competition and the assumption that the competitor faces the same marginal cost of $100 / bottle, what is the profit maximizing market price of the drug? What is the responsibility of the CEO to the shareholders of Turing and to society? Should Martin Shkreli lower the price for Daraprim?

It receives bids to buy shares from investors A through F. The number of shares each would buy and the price they offer to pay is below:

A: 100 shares $16/share

B: 300 shares $14/share

C: 200 shares $10/share

D: 100 shares $12/share

E: 100 shares $13/share

F: 400 shares $14/share

The corporation will sell 1,000 shares. What will be the IPO share price?

a) $14

b) $13

c) $12

d) $10