User Account

All Pages

Airline dynamic pricing

Assignment Help Basic Computer Science
Reference no: EM131499385

Question 1: [Airline Dynamic Pricing]

You are the sales manager of an Airline. There is a flight that will take off in six days and there are still two available seats. Therefore, there are five days for you to sell them. Assume that in each day there will be a potential customer browsing your airline's booking website. The customer's valuation is random and is described by a uniform distribution. That is, if you price the ticket at p ∈ [0, 1], a customer has 1 - p chance to purchase the ticket. Unsold tickets generate no profit and overbooking is not allowed. Please find the optimal first-day price of a ticket.

Question 2: [Option Pricing]

There are three assets in the economy, stock, money, and call option. The stock price tomorrow can be either 5 or 15 depending on circumstances. The money price tomorrow is 1 independent of the economy. The call option has a strike price of 10 (if you own one unit of the call option, you are entitled to purchase a share of stock tomorrow at the strike price).

Suppose today's prices for a share of stock is 12, for money is 1, and for an unit of the call option is 4.

Question: Is there an arbitrage (A portfolio that has a negative price today and nonnegative value in all circumstances tomorrow)? If an arbitrage exists, please find one. If no arbitrage exists, explain why

Reference no: EM131499385

Questions Cloud

What is the correlation coefficient : Assuming a direct relationship between the variables, what is the correlation coefficient?
Discuss grievance mediation : Discuss grievance mediation .The first part of the discussion will focus on what grievance mediation is as it relates to the collective bargaining agreement.
Identify arbitration of statutory rights in union : During a class discussion, identify arbitration of statutory rights in union and non-union cases. Chapter 12 of your text has the referred to cases.
What is the current real interest rate : Suppose that the nominal prime interest rate for a one-year loan is currently 6 percent. If inflation is 1 percent per year, what is current real interest rate
Airline dynamic pricing : You are the sales manager of an Airline. There is a flight that will take off in six days and there are still two available seats.
Provide supporting evidence for premises of your argument : This final assignment is designed to involve all of the main skills that you have learned during this course. In particular, your paper should demonstrate.
Identify the purpose of each type of search : Warrantless searches are important for law enforcement and criminal investigations because it makes it possible for police officer to gather evidence.
Determine the role it research plays : ITECH 5500 Professional Research and Communication Determine the role IT research plays in contributing to organisational innovation, and success.
Demand or supply versus changes in quantity : Discuss demand, supply, their interaction, changes in demand or supply versus changes in quantity demanded/supplied, elasticity concepts

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Library management system

The paper must concentrate on a topic chosen in Week 3.  The textbook must be used as one of the minimum three references for the paper.APA format should be followed in regard to the completion of this paper. It should be APA 6.0 format.A minimum of ..

  What are the polar equations of the lines

If the origin is at the center of the screen, what are the polar equations of the lines that cut the region into the six congruent slices shown?

  Displays something different on the screen

1. Give an example of a one-line script that does display something on the screen when the script is executed, but displays something different on the screen when that line is entered into the interactive shell. (using Python)

  Watch the film pi

The film "Pi" has a math- computer - numerology theme, and is an early effort by Darren Aronofsky, who is famous for "The Black Swan". If you have seen "The Black Swan", I think you will recognize "Pi" as Anonofsky's work.

  Manual park button and the application accurately

As an application tester, I want to press the manual park button and the application accurately records the location of the intended vehicle. The ratio of successes to failures will be recorded to report to the development team.

  Audience visualize how the security team functions

Create a 4- to 5-slide narrated presentation in response to the request from the CEO. Include an organizational chart to help the audience visualize how the security team functions. Include detailed speaker notes or transcription of narration.

  What are the major design considerations for your program

How does the complexity of the graph (in terms of number of branches and cycles) affect the algorithm you use?

  Is this algorithm cost-optimal on an erew pram

Is this algorithm cost-optimal on an EREW PRAM?

  Determine the rotational speed and diameter of the rotor

At runner inlet the ratio of the absolute velocity to the spouting velocity is 0.77, the absolute flow angle is 68°, and the ratio of the blade speed to the spouting velocity is 0.6583. At runner outlet, the absolute flow is to be without swirl

  Describe and assess the evaluation method

Describe and assess the evaluation method being used by the testing company, i.e., nonvisual and verbal recording of browser activities and tester's vocal comments.

  What is the maximum daily profit

If the profit on Model 28 is $100 and on Model 74 is $60, how many of each model should be assembled each day to provide maximum profit?

  Find an equation representing farthest points the sprinkler

Migina's backyard is 40 feet wide and 50 feet long. If Migina waters her backyard without moving the sprinkler, what percent of her backyard will not be watered directly?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd