OC21615

Question 1 (20 marks, 4 marks each part) The following parts of the question are unrelated: (a)fred heath wants to borrow for 20 days from the friendl

The lehmans seem to have a pretty good financial status with a net worth of ,500 and ,500 in cash to spend. Over the years, theyve also managed to take

You must sign and submit the standard cover page supplied as the last page of this assignment. Staple your assignment prior to handing it in. This assi

You must sign and submit the standard cover page supplied as the last page of this assignment. Staple your assignment prior to handing it in. This assi

S0 = 50, k = 52, r = 5% t = 2y , m = 2, t= 1 y, u = 1. 2 ,, d = 0. 8. The payoff for a put is k st , or 0. Put = [ p2 x fuu + 2p(1-p)fud + (1-p)2 fdd]

Note: all black lines are initial positions, all red lines are the second step. S = 100, k = 100 div = 4 (time = 0. 5) r = 4% t = 1 cmkt = 40, pmkt = 2

It is however no longer available and cannot be done in the present market due to taxable advantage. 40 2x20 + 40 + 2 ( , 0) e. g. max( 660 a3 , 0) Any

Put call parity c + ke-rt = p + s0. S0 = 200, k = 180 r = 4% t = 1 year c = 40: what is p. We get p = c + ke-rt + s0. P = 12. 94: assume pmkt = 20, now

In economic market, for leading indicators, we look at shipping, stock market. We also look at money supply, interest rates and inflation. For instance

Economic analysis: global / macroeconomic factors, we"re looking at asset allocation and global allocation. We would overweight or underweight classes

Private management and advisory firms : investment firms: clients pay fees for uniquely/ customised investment advice. Each person"s money is invested

Note: present value is equal to sum of future cash flows discounted. Etfs ( exchange traded funds): before etfs, we had adrs which are american deposit

Note: present value is equal to sum of future cash flows discounted. Etfs ( exchange traded funds): before etfs, we had adrs which are american deposit

Private management and advisory firms : pay fees for uniquely/ customised investment advice. Each person"s money is invested into unique accounts. Inve

For an average portfolio, managers are looking at 8% return. Assumptions : efficient investors , risk free rate, homogenous expectation, ,fractional ho

Continuation : chapter 3: c, 80,000 for house that requires downpayment of 100,000 in 5 years. Answer: b: answer, a, constant growth annuity : none of

Multiple choice chapter 2: calculate ear for each. { 1 + 0. 0685/2} ^ 2 1 = 6. 6973: a. 9750: pmt = 2000, n = 5, i = 6, cpt pv = 8424. 73 or pva = 2000

A stock or share represents ownership in a piece of a company. The stock price of a company is the current market price of a single stock in that compa

Relatedness: similar markets, related core competence (e. g. mcdonalds coffee) Synergy creation is a form of value creation economies of scope. Economi

When firms diversify into different markets, their diversification create multiple market contacts with other firms, which lead to multi-market competi

In most cases, firms compete for profit margin, you don"t want negative profit margin. To increase price you need to increase value (product differenti

Strategy: how to create value for customers while differentiating from others; open & flexible arises from a deliberate, rational, reflective process.

Goal: choose the cost allocation method that bet reflects how thte costs actually flow throughout a real economic process. Joint costs: costs of a prod

Support department cost allocation is treated separately in part because most period costs are excluded from inventoriable costs by accounting standard

Pricing decisions, product profitability decisions, and cost management. Influences of costs vary among products, and pricing decisions differ greatly

A good decision process includes a post implementation assessment and explanation of the key causes of variance. Decisions are made based on forecasted

Direct cost: control is easy, straightforward due to observable cause effect relationship. Indirect cost: benefit shared unequally among different prod

Capacity choice -> denominator level -> price and cost. Denominator levels: a complex decision w/ complex effects. Supply level constraints: theoretica