Options on GBP are traded on the Philadelphia Stock Exchange. A call expiring in three months with a

Options on GBP are traded on the Philadelphia Stock Exchange. A call expiring in three months with a strike price of USD 1.60 is trading at a price of USD 0.04. Consider an investor who buys three contracts and holds the options to maturity. At maturity, GBP is trading at USD 1.57. What net profit does this investor obtain? Assume contract size is 10,000 currency units.

PROPERTY AND HEALTH INSURANCE Life Situation Financial Data Pam, 36 Josh, 38 Three children, ages 9,

PROPERTY AND HEALTH INSURANCE

Life Situation
Financial Data

Pam, 36
Josh, 38
Three children, ages 9, 7 and 4
Monthly income $4,300
Living expenses $4,075
Assets $50,850
Liabilities $99,520
The Brocks are assessing their health insurance coverages. Since
Josh’s current employer offers him only 30 days of sick leave, they need
to consider this factor when assessing disability insurance plans.

Since Pam’s work activities have varied, the family is dependent on
Josh’s health insurance. In recent weeks, his company is considering
several types of plans. These alternatives include traditional health
insurance programs and HMOs, with a wide variety of coverage and cost
differences.

Both Pam and Josh Brock are pleased with their lives and various
family activities. They now have three children, are enjoying their
home, and are more financially secure than six years ago. Yet the Brocks
still have financial needs they must address.

Several changes have affected their financial planning. The value
of their home has increased due to inflation and home improvements. They
have purchased a used car to meet additional transportation needs.
These situations must be considered in relation to insurance needs for
the Brock household.

What types of health insurance coverages would be recommended for the Brocks?

You belong to an unusual pension plan because your retirement payments will continue forever (and w

You belong to an unusual pension plan because your retirement payments will continue forever (and will go to your descendants after you die). If you will receive $30,000 per year at the end of each year starting 25 years from now, what is the present value of your retirement plan if the discount rate is 5.5%?

The Quick-step corporations common stock is selling at $90.00 per share.Its managers who firmly beli

The Quick-step corporations common stock is selling at $90.00 per share.Its managers who firmly believe in the non-constant growth version of the dividend discount model, are convinced that it is incorrectly priced in the market.The last paid dividend per share was $2.50, and based on the firm’s market share and competitive strengths it is estimated that the dividend will grow at the rate of 20% for two more years, then grow at the rate of 14% for an additional year, before converging to the industry average growth rate of 9%.If the discount rate estimated for the firms stock is 15%, what do you think about the managers beliefs? Explain.

NPV Simes? Innovations, Inc., is negotiating to purchase exclusive rights to manufacture a…

NPV Simes? Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a? solar-powered toy car. The? car’s inventor has offered Simes the choice of either a? one-time payment of ?$1,600,000 today or a series of 6 ?year-end payments of ?$380,000.

a. If Simes has a cost of capital of 14?%, the present value of the annuity is ?$_____. (Round to the nearest? dollar.)

Which form of payment should the firm? choose? ?(Select the best answer? below.)

A. Annuity paymentAnnuity payment

B. Lump sum paymentLump sum payment

b. The yearly payment that would make the two offers identical in value at a cost of capital of 14?% is ?$_____. ?(Round to the nearest? dollar.)

c. If the yearly payments were made at the beginning of each? year, the present value of the annuity is ?$_____. (Round to the nearest? dollar.)

Which form of payment should the firm choose if the annuity payments are paid at the beginning of each? year? ?(Select the best answer? below.)

A. Annuity payment

B. Lump sum payment

d. The? after-tax cash inflows associated with this purchase are projected to amount to ?$247,000 per year for 15 years. Will this factor change the? firm’s decision about how to fund the initital? investment? ?(Select the best answer? below.)

A. ?No, the cash flows from the project will not influence the decision on how to fund the project. The investment and financing decisions are separate.

B. Yes, the cash flows from the project will influence the decision on how to fund the project. The investment and financing decisions are related.

When requesting a Spot quote on the Euro in the US, the broker says: 25-35. Determine the current sp

When requesting a Spot quote on the Euro in the US, the broker says: 25-35. Determine the current spot quote if when you looked it up yesterday over the internet it had closed at: Bid $1.2214/€ Ask $1.2220/€. What is the “bid/ask†spread?

If you were the head of a business unit within VW Group, how would you leverage big data to help the 1 answer below »

If you were the head of a business unit within VW Group, how would you leverage big data to help the company achieve this strategy? You can select any unit, such as any brand or function

finance and accounting help!

Case Study Analysis Discussion Controlling Costs

In this assignment, you will analyze the SMH data set to identify costs associated with specific clinical product lines and measure gross profit. This is an extension of the work you did in M3: Assignment 1. You will prepare a report that discusses where cost savings could be realized and what revenue centers within the hospital generate income.

Through this discussion, you will compare the results of your analysis and become familiar with activity-based costing and managed care contracting. The product lines included for this case are cardiology, orthopedic medicine, and other. For your analysis, you can use the SMH data file, which you had downloaded from the Doc Sharing area.

For the case study analysis, you will use the SMH data file to do the following: Calculate inpatient gross profit (GP) for each product line. Use the template in the SMH data file for this activity. Comment on the results of your inpatient GP calculations. What product line is most profitable by dollar amounts and GP percentage? Using your calculations, comment on the following factors. Is there value in separating product lines into more detail? What detail would you recommend? What is the value in separating revenue and expenses by physician? Surgery type? And others?

Write a 1- to 2-page paper in Word. All written assignments and responses should follow APA rules for attributing sources.

INVESTMENT (FINANCE) QUESTION

Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rf . The characteristics of two of the stocks are as follows:

Stock Expected Return Standard Deviation A 6 % 35 % B 13 65

Correlation = -1

CORRELATION IS (-1)
Required:

(a)

Calculate the expected rate of return on this risk-free portfolio. (Hint: Can a particular stock portfolio be substituted for the risk-free asset?) ( Round your answer to 2 decimal places.)

(b)

Could the equilibrium rf be equal to 8.45%? YES OR NO ?

Suppose that the following cash flows are received:If cash flows are discounted at 10% per period, t

Suppose that the following cash flows are received:If cash flows are discounted at 10% per period, the net present value of those cash flows (rounded to the nearest cent) is-$2.39-$2.63-$5.12-$5.63None of the above