FIN532M: Financial Derivatives Problem Set 2 DUE DATE: Feb. 12‚ 2015 1. How can you differentiate the forward price from the value of a forward contract? (2 points) 2. Explain why an FRA can be viewed as an exchange of a floating rate of interest for a fixed rate of interest payments and how you can use FRA in mitigating risks. (4 points) 3. The standard deviation of monthly changes in the spot price of live cattle is 1.2 cents per pound. The standard deviation of monthly changes in the futures
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Biology 180 Problem Set 2 1. A population of marine gastropods has shell lengths that are normally distributed with a mean μ = 8 mm and variance σ2 = 2.15 mm2. a. what proportion of the population will have shell lengths between 6.5 mm and 8.5 mm? (3 points) b. what is the probability of finding a gastropod that has a shell length of exactly 7.5 mm? (1 point) c. if there are 1‚000 gastropods in an area‚ how many will have shell lengths greater than 5 mm? (3 points) 2. Childhood lead poisoning
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they will incarcerate a juvenile for‚ so we usually give them a stern talking to and release them back to the custody of their parents. I also work closely with the middle and high school administrators. Sometimes we are in the schools dealing with problems or sometimes we take kids back to school that we find skipping class. This is why I chose to write this discussion board entry on the ethics of school counselors. There are several ethical standards for school counselors‚ so I will only be
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U(x‚y) = x11/2x21/2 L (x1‚x2‚λ) = x11/2x21/2 + λ (I – px1x1 – px2x2) ɗL/ɗx1 = (1/2)x1-1/2 x21/2 – λpx1 = 0 ɗL/ɗx2 = (1/2)x11/2 x2-1/2 –λpx2 = 0 ɗL/ɗλ = I – px1x1 – px2x2= 0 => px1/px2 = x2/x1 => x1 = (px2x2) / px1. Put this in the budget constraint: I = px1(px2x2) / px1 + px2x2 => x2* = I / 2px2 Using the same way to find the demand function of good 1‚ we obtain: x1* = I / 2px1 b) x1* = 24 / (2∙1) = 12 x2* = 24 / (2∙2) = 6 c) x1* = 24 / (2∙1) = 12 x2* = 24 / (2∙3) = 4 d) Substitution
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Me1 Problem Set #2 The US College Enrollment and the “Third Law of Demand” A theorem proposed by Professors Alchian and Allen in their text‚ University Economics (1964) has had several rebirths of interest in the literature. The so-called “third law of demand‚” or “relative price theorem‚” holds that a fixed cost added to a good of varying quality causes the consumer to prefer the category considered of higher quality to the lower. Recently a number of studies‚ keeping this theorem in mind have
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Problem Set 1 Name:______________________ Problem Set 1 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 2. 1. Based on the information provided for the market for video games‚ answer the following questions. PRICE Q DEMANDED Q SUPPLIED $50 5 9 $45 7 7 $40 9 5 $35 11 3 $30 13 1 a) Draw and properly label the demand and supply graphs (this means you must label the axes and any lines you include on the graph). b) What is the equilibrium price and quantity? b.) PRICE:
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Math – 213 Problem Set Solve each of the following problems. 1. A coin is tossed four times. What is the probability that at least 2 heads will occur? 2. A pair of dice is rolled. What is the probability that the sum is equal to the following? a. 5 b. 10 c. at most 9 d. at least 8 3. A chip is drawn at random from a jar containing 8 red‚ 2 blue‚ 3 green‚ 4 yellow‚ and 3 white chips. Determine the probability that it is: a. Red b. Yellow or red c. Not orange 4. In a graduating class of 300 students
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10 7 October 2014 Liberty University (L.U.) Liberty University started out by a preacher‚ Dr.Jerry Falwell‚ challenging his congregation to establish a Christian college in Lynchburg‚ Virginia. That challenge became Lynchburg Baptist College. In 1975‚ Lynchburg Baptist College changed to Liberty Baptist College. In 1980‚ the college became fully accredited with the Commission on Colleges of the Southern Association of Colleges and Schools. Liberty is the seventh largest university and the world’s
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potential energy. What is the mass of the man? Given: Formula: h = 5 m m = PE/gh PE = 2200 J Solution: m = 2200 J / (9.8 m/s2 x 5 m) m = 49 kg 2. Calculate the kinetic energy of a 500 kg car travelling at 50 m/s. Given: Formula: m = 500 kg KE = mv2/2 v = 50 m/s Solution: KE = 500 kg x (50 m/s)2 / 2 KE = 625 000 J Power 3. Riley climbs a flight of stairs in 3 minutes. If he weighs 700 N and the stairs is 20 m from the ground‚ how much power will she develop
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ECE 302 Problem Set 9 Fall 2013 The following problems have been selected from the course text. 4.78 In a large collection of wires‚ the length of a wire is X‚ an exponential random variable with mean 5π cm. Each wire is cut to make rings of diameter 1 cm. Find the probability mass function for the number of complete rings produced by each length of wire. 4.85 The exam grades in a certain class have a Gaussian pdf with mean m and standard deviation σ. Find the constants a and b so that
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