Responsible for constructing

Assignment Help Engineering Mathematics
Reference no: EM131206389

1. Assume you work for an oil company that deals with oil contracts and you are responsible for constructing those oil contracts. Assume you have an oil contract that has the following characteristics: Zero initial cost and the buyer pays S - F each quarter with a cap of $21.90 - F and a ?oor of $19.90 - F. If oil volatility is 15%, calculate F.

Reference no: EM131206389

Questions Cloud

Risk-free interest rate : Suppose the risk-free interest rate is 4.6 % a. Having $200today is equivalent to having what amount in one year? b. Having $200in one year is equivalent to having what amount today?
Explain the cash realization cycle : Please write at least three well composed paragraphs that explain the cash realization cycle. What role does inventory turnover and receivable collection play in the realization of cash for a business?
Calculate the value of mgs corporation : (a) Calculate the value of MGS Corporation's equity using the Adjusted Present Value (APV) approach. (b) Calculate the Weighted Average Cost of Capital (WACC) for the MGS Corporation
Determine unit hydrograph ordinates for the convex river : Determine the unit hydrograph ordinates for the Convex River flow data shown below. For ease of computation the total ordinates are tabulated below the hydrograph -  estimate the peak flow capacity of the existing culvert in m3/s.
Responsible for constructing : 1. Assume you work for an oil company that deals with oil contracts and you are responsible for constructing those oil contracts. Assume you have an oil contract that has the following characteristics: Zero initial cost and the buyer pays S - F ea..
Comprehensive financial analysis and proposal : Throughout this course, you will prepare a comprehensive financial analysis and proposal (excluding tables, figures, and addenda) that will demonstrate your understanding of key financial concepts, strategies, and practices.
Discuss the dividend policy of mcdonalds : Using the annual report and other sources such as a 10k or 10q's, discuss the dividend policy of McDonalds.
Are the potential solutions feasible : Are there any conflicts among the various perspectives regarding potential solutions to the social issue? What are the conflicts that exist? If you do not believe there are any conflicts, explain how you arrived at this conclusion.
Determining the conflict of interest : The bank loaned them $150,000 at 8% (that interest is due this year). The interest didn't worry them too much as it was partly off-set by the dividend check they received from McDonalds for $8,000 (hmmmmm - I wonder if there is a conflict of inter..

Reviews

Write a Review

Engineering Mathematics Questions & Answers

  Monthly demands at a minimum cost

Riley's produces two grades of ice cream-creamy and premium. Both are produced by blending two types of dairy mixes. Both dairy mixes contain different amounts of butter fat and skim milk. Their cost per gallon varies accordingly

  Target debt-equity ratio

Miller Manufacturing has a target debt-equity ratio of .55. Its cost of equity is 14 percent, and its cost of debt is 5 percent. If the tax rate is 38 percent, what is the company's WACC? (Do not round intermediate calculations and enter your answ..

  System of first-order differential equations

If the state equations are a system of first-order differential equations whose solution yields the state variables, then the output equation performs what function?

  What is the largest possible number of pairs

Patrol officers are to be paired for the 3-11 pm shift. Each pair must have an experienced and an inexperienced officer who are compatible. What is the largest possible number of pairs with each officer in at most one pair

  What information can be gathered from a line spectrum plot

An advisory board member for the engineering technology programs recently approached us. Discuss what is meant by line spectra and what information can be gathered from a line spectrum plot.

  You can solve this part a after read network a consider the

you can solve this part a after read network a consider the following electrical network and corresponding oriented

  Explanation will involve eigenfunctions and orthogonality

The following is a general Fourier series for u(x, y), Explain why we multiply u0(t) by ½. A thorough explanation will involve eigenfunctions and orthogonality

  Construct a three-year binomial interest rate tree

Using a value of 10% for the volatility of the one year forward rate, construct a three-year binomial interest rate tree with one year forward rates.

  Managing ashland multicomm services1 hint let pi 002 as

managing ashland multicomm services1. hint let pi 0.02 as shown in the table for no free premium channels.a. px lt 3

  Formulate the linear programming model for given problem

Formulate the Linear Programming model for this problem. Solve the problem using Excel Solver or QM for Windows.

  Briefly explain why the bernoulli process assumptions

Briefly explain why the Bernoulli process assumptions and what is the probability that all three 20 ml samples will show 0 or 1 bacteria?

  Prove that f is bounded above and achieves its maximum

Suppose f: [0, 1] → R is upper semicontinuous: This means that for every x ∈ [0, 1] and every ε > 0, there exists δ > 0 such that |y -x|

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!

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