Reference no: EM131401758
Question 1. You are going long on a 50 day contract at F(0,T) = $55. Risk-free rate = 0.10. 25 days later, the spot price is $52. What is the value of the forward contract?
Question 2. You purchased JNJ stock at $50 per share. The stock is currently selling at $65. Your gains may be protected by placing a __________.
Question 3. You purchase one JNJ 75 put option for a premium of $3. Ignoring transaction costs, the breakeven price of the position is
Question 4. In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be?
Question 5. An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70 percent in a T-bill that pays 6 percent. His portfolio's expected return and standard deviation are __________ and __________, respectively.
Question 6. You buy 100 shares of Doggie Treats Inc. that are currently selling at $22 per share. You post the 45% margin required on purchase. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account, and the firm does not pay any dividends.)
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What is the approximate herfindahl index
: Which industry is more highly concentrated: one with a Herfindahl index of 1,200 or one with a four-firm concentration ratio of 55 percent?
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How does civil litigation process differ from that of case
: Discovery can be time-consuming and expensive; yet, it can also lead to case settlement after the litigants have a chance to consider all of the evidence and more accurately assess their odds of winning at trial. describe what you think is the impa..
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Should individual with known genetic disorder have children
: Do recreational drugs pose a threat to young individuals in the United States? Should individuals with a known genetic disorder or trait have children? Pros and Cons of Genetic Engineering Stem cell research.
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Why the merger might decrease competition
: What are the approximate Herfindahl and four-firm concentration ratios for these industries? (Assume all other firms in each industry have 1 percent of the market each.)
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Breakeven price of the position
: You purchase one JNJ 75 put option for a premium of $3. Ignoring transaction costs, the breakeven price of the position is. In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal ..
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Discuss about the structural or affiliation hypothesis
: Explain in detail the "slippery slope" and its relationship to gratuities, using examples.Explain each of the following theories regarding public corruption.Society-at-Large Hypothesis.Structural or Affiliation Hypothesis.Rotten Apple Hypothesis.Prov..
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Provide a detailed description of materials and methods used
: Provide a detailed description of the materials and methods used to conduct the experiment. Identify control and experimental samples, as well as independent and dependent variables.
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What distinguishes oligopoly from monopolistic competition
: Is an oligopolist more or less likely to engage in strategic decision making compared to a monopolistic competitor?
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Find the correlation between diameter and age
: Check the residuals. Explain why a linear model is probably not appropriate.- If you used this model, would it generally overestimate or underestimate the ages of very large trees? Explain.
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