# Problem Essay Examples

Problem-solving Problem (a) The expected value of the unhedged firm is: 0.5*200/(1+0.05)+0.5*(500-(500-300)*0.4)/(1+0.05)=95.24+200=295.24 Problem (b) Let’s buy put options for gold pricing at 500 with premium P. The expected value of the hedged firm is: (500-(500-300)*0.4)/(1+0.05)-P=420-P Problem (c) The safe debt is the one that pays off not more than 200 in a year. The value of the firm is:0.5*(200-200)/(1+0.05)+0.5*(500-200-(500-200-300)*0.4)/(1+0.05)=142.86 Problem (d) The safe debt is the one that pays off not more than 200 in a year. Let’s buy put options for gold pricing at 500 with premium P. The value of the firm is: (500-200-(500-200-300)*0.4)/(1+0.05)-P=285.71-P Problem...

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Problem-Solving Name Institution Problem Solving Part 1 V(t,x) =f(t)log(x+gty)+h(t) = =Vt-12(u-rδ)2VX2VXX+rxVX-βV+yVx+maxc-cVX+u1c=0=Vt-logu-rδVX2VXX +rxVX-βV+yVx+maxc-cVX+u1c=0Focusing on the time limit Such that Rearranginging Deviding by h Taking limits as h0 s.t The economic interpretation of g(t)y is labor income at the time, t. Part 2 2. 1. Optimal Trading Strategy Wealth process dXtπ=πtTμtdt+σtdWt+Xtπ-1nTπtX0=x0y=EβTI(βTST, where I is the optimal trading. where , and is uniquely determined by 2.2. Optimal Consumption in terms of X(t)+g(t)y= Such that,left952500 = Reference Bensoussan, A., & Zhang, Q. (2009)....

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Problem 2Suppose we are analyzing an equilibrium in which the MMs’ strategy is to not acquire information (pn = 0 for n = 1, 2). Argue that in this case, bn = 1/2 in equilibrium. Lack of value information implies that both players are bound to make a bid that is defined by the expectation of the market. In essence, the prospect of attaining bn-V would remain equally distributed among the two market markers. Arguably, the attribute of the trader stands dismissed along the implication of noise. Considering the input of the two market markers, n1 and n2, their ability to achieve bn when the value is unknown would be split evenly MMn1 = bn – V MMn2 = bn – V But V = 0 (since v is...

Problem 15-1B looks into Agler company's manufacturing accounts which manufacture helmets. Various costs items have been classified as either product costs, direct labor, direct materials or manufacturing overheads. Total production costs have been calculated to determine the cost of producing one helmet. Problem 15-2B analysis the manufacturing accounts of Elliot's company which manufactures tennis rackets. After computing the total production costs amounting to $147,700 incurred to produce 2500 tennis rackets, the cost of producing one racket is $59.08. Problem 15-3B looks into two cases in which the cost of goods manufactured schedule; income statement and a partial balance sheet are prepared....

problems Abstract This paper looks into the entries made into the books of accounts relating to manufacturing accounts. Various classifications of costs in the manufacturing sector have been used to record each cost item. P15-3A comprises of two cases in which manufacturing costs and selling expenses are listed. The paper seeks to show how the cost of goods manufactured is arrived at, the accompanying income statement and a list of selected current assets. Problem 14-5A looks into the computation of costs of goods manufactured presented in a schedule as well as the income statement for the financial year. Problem 15-4A also looks into the manufacture cost schedule and list of current assets for...

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problem and look at it from different aspects (Leedy & Ormrod 2015). Thus, it is possible for the scholar to examine the research problem, relate it to the findings and develop an explanation of the study questions. There is no point in surveying if one cannot interpret the results. Thus, without an interpretation, the researcher will not understand the study problem and meet the objectives. Additionally, an interpretation adds to the reliability and validity of the research. The purpose of the study should be to allow another reader to understand it. However, no one can trust the credibility of a survey that has no interpretation of the findings (Leedy & Ormrod 2015). The reader would...

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problem organizing her ideas, which alters the sense in her statements. Sydney also elicits movement disorders that occur as agitated body movements. For example, she throws herself on the chair without minding whether she could get hurt and almost spits at Carlos. Sydney is experiencing symptoms of altered perception such as illusions, hallucinations, and paranoid thinking. She displays more of auditory hallucinations whereby she has a tendency of accusing people who are not there. For instance, she runs into the lobby shouting, shut up! Shut up!; she also calls people fish heads and crappie heads. Paranoid thinking is characterized by the fact that she feels threatened by unknown people who are...

Assignment 2 Introduction to Econometrics STATA OUTPUT – For a The sample mean for beauty ratings is -0.0109287, as shown from the output. STATA OUTPUT – Q b The regression output predicts course evaluation using beauty, with beauty being the independent variable while the course evaluation is the dependent variable. From the output the null hypothesis from the F-test is that the R-squared is 0, but the F-test value is 0.0085 which is less than 0.05, therefore we reject the null hypothesis with 95% level of confidence. The R-squared, 0.0197 shows that the model explains only 1.97% of the variation in course evaluation is explained by the model, because the model does not explain...

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