There is an American put option on a stock that expires in two months. The stock price is $100 and the standard deviation of the stock returns is 72 percent. The option has a strike price of $112 and the risk-free interest rate is an annual percentage rate of 5.6 percent.

What is the price of the option? Use a two-state model with one-month steps

There is an American put option on a stock that expires in two months. The stock price is $69 and the standard deviation of the stock returns is 59 percent. The option has a strike price of $78 and the risk-free interest rate is an annual percentage rate of 5.8 percent.

What is the price of the option? Use a two-state model with one-month steps. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

"To Breakfast or Not to Breakfast?" by Richard Ayore

In the American society, birthdays are one of those days that everyone looks forward to. People of different ages and peer groups gather to mark the

18^th, 20^th,   ,

birthdays. During this time, one looks back to see what he or she has achieved for the past year and also focuses ahead for more to come.

If, by any chance, I am invited to one of these parties, my experience is always different. Instead of dancing around with my friends while the music is booming, I get carried away by memories of my family back home in Kenya. I remember the good times I had with my brothers and sister while we did our daily routine.

Every morning, I remember we went to the shamba (garden) to weed our crops. I remember one day arguing with my brother as to why he always remained behind just to join us an hour later. In his defense, he said that he preferred waiting for breakfast before he came to weed. He said, "This is why I always work more hours than you guys!"

And so, to prove him wrong or right, we decided to give it a try. One day we went to work as usual without breakfast, and recorded the time we could work before getting tired and stopping. On the next day, we all ate breakfast before going to work. We recorded how long we worked again before getting tired and stopping. Of interest was our mean increase in work time. Though not sure, my brother insisted that it was more than two hours. Using the data in the table below, solve our problem. (Use

α = 0.05)

NOTE: If you are using a Student's t-distribution for the problem, including for paired data, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.)

• Part (a)

  State the null hypothesis.

  H₀: μ_d > 0

  H₀: μ_d ≠ 0

      

  H₀: μ_d < 0

  H₀: μ_d ≥ 0

  H₀: μ_d = 0

• Part (b)

  State the alternative hypothesis.

  H_a: μ_d < 0

  H_a: μ_d ≤ 0

      

  H_a: μ_d > 0

  H_a: μ_d ≥ 0

  H_a: μ_d ≠ 0

• Part (c)

  In words, state what your random variable

  X_d

  represents.

  X_d

  represents the average work times of the 10 days.

  X_d

  represents the average difference in work times on days when eating breakfast and on days when not eating breakfast.    

  X_d

  represents the total difference in work times on days when eating breakfast and on days when not eating breakfast.

  X_d

  represents the difference in the average work times on days when eating breakfast and on days when not eating breakfast.

• Part (d)

  State the distribution to use for the test. (Enter your answer in the form z or t_df where df is the degrees of freedom.)

• Part (e)

  What is the test statistic? (If using the z distribution round your answer to two decimal places, and if using the t distribution round your answer to three decimal places.)
  ---Select--- z t =

• Part (f)

  What is the p-value?

  p-value < 0.0100.010 < p-value < 0.050    0.050 < p-value < 0.100p-value > 0.100

  
  
  Explain what the p-value means for this problem.If

  H₀

  is false, then there is a chance equal to the p-value that the sample average difference between work times on days when eating breakfast and on days when not eating breakfast is less than 2.1.If

  H₀

  is true, then there is a chance equal to the p-value that the sample average difference between work times on days when eating breakfast and on days when not eating breakfast is less than 2.1.    If

  H₀

  is true, then there is a chance equal to the p-value that the sample average difference between work times on days when eating breakfast and on days when not eating breakfast is at least 2.1.If

  H₀

  is false, then there is a chance equal to the p-value that the sample average difference between work times on days when eating breakfast and on days when not eating breakfast is at least 2.1.

• Part (g)

  Sketch a picture of this situation. Label and scale the horizontal axis and shade the region(s) corresponding to the p-value.

• Part (h)

  Indicate the correct decision ("reject" or "do not reject" the null hypothesis), the reason for it, and write an appropriate conclusion.(i) Alpha (Enter an exact number as an integer, fraction, or decimal.)
  α =
  
  (ii) Decision:

  reject the null hypothesisdo not reject the null hypothesis    

  
  (iii) Reason for decision:

  Since p-value < α, we reject the null hypothesis.Since p-value > α, we do not reject the null hypothesis.    Since p-value > α, we reject the null hypothesis.Since p-value < α, we do not reject the null hypothesis.

  
  (iv) Conclusion:

  There is sufficient evidence to conclude that the mean difference in work times on days when eating breakfast and on days when not eating breakfast has increased.There is not sufficient evidence to conclude that the mean difference in work times on days when eating breakfast and on days when not eating breakfast has increased.    

• Part (i)

  Explain how you determined which distribution to use.

  The t-distribution will be used because the samples are dependent.The standard normal distribution will be used because the samples involve the difference in proportions.    The standard normal distribution will be used because the samples are independent and the population standard deviation is known.The t-distribution will be used because the samples are independent and the population standard deviation is not known.

"To Breakfast or Not to Breakfast?" by Richard Ayore

In the American society, birthdays are one of those days that everyone looks forward to. People of different ages and peer groups gather to mark the

18^th, 20^th,   ,

birthdays. During this time, one looks back to see what he or she has achieved for the past year and also focuses ahead for more to come.

If, by any chance, I am invited to one of these parties, my experience is always different. Instead of dancing around with my friends while the music is booming, I get carried away by memories of my family back home in Kenya. I remember the good times I had with my brothers and sister while we did our daily routine.

Every morning, I remember we went to the shamba (garden) to weed our crops. I remember one day arguing with my brother as to why he always remained behind just to join us an hour later. In his defense, he said that he preferred waiting for breakfast before he came to weed. He said, "This is why I always work more hours than you guys!"

And so, to prove him wrong or right, we decided to give it a try. One day we went to work as usual without breakfast, and recorded the time we could work before getting tired and stopping. On the next day, we all ate breakfast before going to work. We recorded how long we worked again before getting tired and stopping. Of interest was our mean increase in work time. Though not sure, my brother insisted that it was more than two hours. Using the data in the table below, solve our problem. (Use

α = 0.05)

• State the distribution to use for the test. (Enter your answer in the form z or t_df where df is the degrees of freedom.)

• Part (e)

  What is the test statistic? (If using the z distribution round your answer to two decimal places, and if using the t distribution round your answer to three decimal places.)

• Part (f)

  What is the p-value?

ABC (American bread company) is a competitor in the product market, but a monopsonist in the labor market. ABC's production function is Q = 30L - 0.5L² . Market demand for bread is Q = 1000 - 5P and supply is Q = -20 + 250P. The market supply of labor is W = 2L.

1. Derive the unconditional demand for labor for ABC.

2. Suppose ABC does not exploit its monopsony power (acts as a competitor in the labor market). Compute the equilibrium W and L, Employee Surplus(ES) and Economic Rent(ER).

3. Suppose ABD DOES exploit its monopsony power. Compute the equilibrium W and L, Employee Surplus(ES) and Economic Rent(ER).

4. Find the DWL resulting from ABS's exploitation of monopsony power.

5. If the government imposes full coverage minimum wage at $35, what is L, ES, ER now? Who gains who loses compared to when ABC exploits its monopsony power. What is the "net" gain?  

An investor is provided with the following information on American put and call options on a share of a company listed on the London Stock Exchange:

• Call price (c₀) = 33p
• Put price (p₀) = 49p
• Exercise price (X) = 480p
• Today: 11 June 2019
• Expiry date: 20 December 2019
• Current stock price (S₀) = 458p
• Risk-free interest rate (r) = 2.4%
• The company pays no dividends.

Draw a graph showing the prices at expiry of a fiduciary call and another one showing a protective put, including all of their components, in relation to the price of the stock in a range between 350p and 600p.

Company to be used for this exercise is 3M.

• The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods

1.    Corporate Level Strategy (Chapters 9 & 10)

1.1.    What is the organization’s corporate-level strategy? Related vs. Unrelated

1.2.    If it operates in more than one business, do the businesses share or trade resources?

1.3.    What are the connections among the different businesses?

1.4.    What has been the primary mode of diversification: acquisition, joint-venture, or internal growth?

1.5.    What is your assessment of its growth mode?

1.6.    If the organization operates in one business, could it gain value through diversification?

1.7.    If so, which businesses would you recommend and how can it create value?

What mode of diversification and growth would you recommend?

The history of American popular musical styles such as Jazz and Rock and Roll is an exploration of the fusion of many earlier genres and styles.

For each listening example make a list of major features. What features from each seem to be continued on in later musical styles and even in the music you might listen to today?

West African Drumming:

https://www.youtube.com/watch?v=6dFtlcqGW50 (Links to an external site.)Links to an external site.

Stephen Foster -1851:

https://www.youtube.com/watch?v=uQjGlyRm8ek (Links to an external site.)Links to an external site.

Ragtime 1904:

https://www.youtube.com/watch?v=sE86FR2SzBo (Links to an external site.)Links to an external site.

Spiritual - 1909

https://www.youtube.com/watch?v=GUvBGZnL9rE (Links to an external site.)Links to an external site.

City Blues - 1925:

https://www.youtube.com/watch?v=ZxQncVvsuyg (Links to an external site.)Links to an external site.

Country Blues - 1936:https://www.youtube.com/watch?v=iigXKpgrfYo (Links to an external site.)Links to an external site.

Big Band Swing 1943:

https://www.youtube.com/watch?v=qDQpZT3GhDg (Links to an external site.)Links to an external site.

Rhythm and Blues -1947:

https://www.youtube.com/watch?v=Xo9auUfitVA (Links to an external site.)Links to an external site.

Bluegrass - 1950's

https://www.youtube.com/watch?v=665XeIyMgak (Links to an external site.)Links to an external site.

Bebop - 1950:https://www.youtube.com/watch?v=LphuCadyQi0 (Links to an external site.)Links to an external site.

Western Swing - 1951:

https://www.youtube.com/watch?v=ZFef08YZ6qk&list=RD0C08jmN1sM8&index=3 (Links to an external site.)Links to an e

Soul - 1954:

https://www.youtube.com/watch?v=CnI_LuCJ4Ek (Links to an external site.)Links to an external site.

Rock and Roll - 1955:

https://www.youtube.com/watch?v=ZgdufzXvjqw (Links to an external site.)Links to an external site.

There is a great deal of talk about the liberal bias of the media in American politics. To what extent is the media liberal? To what extent, do you think, it is biased? Considering the growing importance of conservative talk and news enclaves that support conservative causes, describe the ways in which discussions of a liberal bias in the media might be qualified? What other factors might mitigate the liberalism of the media?