April 29, 2014
The Economics of Financial Markets (Spring 2014)
Final Exam
Question 1. (True or False, 4 points). Are the following statements true or false? Explain your
answer in the space provided. You will be graded on your explanation.
(a) When the r

. Introduction. The r)lotinnxirnizing output of a monopolist is found by
_ solving for the mrtput at which marginal revenue is equal to marginal cost.
Having solved for this output, you nd the rnonopolists price by plugging
the protdnnxirnizing output int

NAME _ 269
Machines
40
20
l0
Calcuius 20. 3 (0) A rm uses labor and machines to produce output according to
the production function f (L M ) - 4L 211/1 1/ 2 ,where L IS the number of
units of labor used and M 15 the number of machines. The cost of labor

Chapter 22 NAM;a
Firm Supply
competitive rm is the portion of its shortrun marginal cost curve that
is upwardsloping and lies above its longrun average cost curve.
Example: A firm has the long~run cost function 43;) a: 2312 + 200 for
y > 0 and C(0) 2: 0.

Chapter 23 MAW/1%.
(3) 31(2) =19, 32(1) = 21913397): 339- 5(1) = 6?-
(b)sltp)=2p,32(p)=p1. 8(2) = 2p for p 3 1,3(10) =
3p~1 for p> 1.
(C) 200 rms each have a supply function 51(1) m 239 8 and 100 rms
' - . each have a supply function 5209) = p 3. 8(1) 2 0

February 20, 2015
The Economics of Financial Markets
Problem Set 4
Please type your answers and submit them through Moodle.
Question 1. (Present value of car payments, 6 points).
ABC Autos is offering interest-free credit on a new car that costs $11,250.

February 20, 2015
The Economics of Financial Markets
Problem Set 4
Please type your answers and submit them through Moodle.
Answer 1. (Present value of car payments, 6 points).
Draw a picture.
t = 1
ABCs offer
250
750
250
t = 42
250
.
XYZs offer
10,250
I

April 13, 2015
The Economics of Financial Markets
Problem Set 8 (Microsoft Excel)
Please type your answers and submit them through Moodle.
Question 1. (Historical returns, 7 points).
Download the Excel file returns.xlsx from the course management website

April 24, 2015
The Economics of Financial Markets
CAPM
Question 1. (Estimating the market portfolio and betas)
In the real open market place where the number of assets is enormous, trying to actually
construct the market portfolio would be an awesome and

Outline
1
About this part of the course
2
Financial investments
3
Returns
4
Portfolios
Zaier Aouani
5
Arbitrage
School of Humanities and Social Sciences
Nazarbayev University
6
Law of One Price
7
Arbitrage/Law of One Price illustration: Put-Call parity
8

View By Expiration: Jan 14 | Feb 14 | Mar 14 | Apr 14 | May 14 | Jul 14 | Oct 14 | Jan 15 | Jan 16
Call Options
Strike
Expire at close Friday, February 7, 2014
Symbol
250
255
260
265
270
275
285
290
300
310
315
320
330
3

Minimum Wages and Employment:
A Case Study of the Fast-Food Industry
in New Jersey and Pennsylvania
By DAVID CARD AND ALAN B. KRUEGER*
On April /, 1992, New Jersey's minimum wage rose from $4.25 to $5.05 per
hour. To eraluate the impact of the law we sun

Cicero (106 -43) politician, lawyer, orator.
Actively involving in politics superior good better than just philosophy
Philosophers are at the service of the society
Caesor destroying the Republic, - dictatorship
Being in politics important because you may

PLS 150
Milana Mukiyeva
Reaction Paper 3
Margaret Keck and Kathryn Sikkink in their article International Advocacy Networks
in International and Regional Politics address the increasing influence and spread of the
international advocacy networks throughou

15.0 Warm Up Exercise. (Calculating elasticities.) Here are
some drills on price elasticities. For each demand function, find an ex
pression fer the price elasticity of demand. The answer will typically be
a function of the price, p. As an example, consid

February 9, 2015
The Economics of Financial Markets
Problem Set 3 Answers
K
= S0 +P0 . For Rf = 0 and S0 = 500.74,
Answer 1. (a) The put-call parity condition is C0 + 1+R
f
we have (here Deviation = (C0 + K) (S0 + P0 )
K
480
500
520
C0bid
23.65
12.90
5.70

February 13, 2014
The Economics of Financial Markets (Spring 2014)
Exam 1 - Answers
Answer 1. (True or False, 4 points). Are the following statements true or false? Explain your answer
in the space provided. You will be graded on your explanation.
(a) Fal

April 29, 2014
The Economics of Financial Markets (Spring 2014)
Final Exam - Answers
Answer 1. (True or False, 4 points). Are the following statements true or false? Explain your
answer in the space provided. You will be graded on your explanation.
(a) Fa

ECON 101: INTRODUCTION TO MICROCONOMICS
Problm St 1
Due: Friday, September 4 in lecture
Part 1: Math Review
Remember to show all your work. Also calculators are not allowed in the exam, so you
should try these manually.
1. On June 14, 2000, the Indiana Pa

ECON 201
PROBLEM SET 3
Okan Ylankaya
DUE March 8th
1. Suppose that a consumers utility function is given by u(x,y)=8(lnx+lny)+67. Assume that the price
of y is 1, and the consumers income is 12.
a) Find the demand function for x.
b) Find the quantity of x

Answers to Problem Set 3
1. a) U ( X , Y ) ln X ln Y . Denote p X p , so the budget constraint becomes
pX Y 12 .
MU X
Y
MRS XY
MU Y
X
Setting the marginal rate of substitution equal to the price ratio, we get
Y
MRS XY
p Y pX , which we can substitute i

ECON 201
Name:
Student #:
MIDTERM EXAMINATION
1. (30 points) Hugos utility function for x and y is given by u(x,y)=12xy-4.
a) (13 points) Find his demand functions for x and y.
b) (5 points) Find the income elasticity of his demand for x.
c) (12 points) S