1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
C
B
C
D
C
B
E
A
D
C
Question 1
First find the possible values of the call at expiration and work backward.
Cuu = Max(100 70, 0) = 30
Cud = Cdu = Max(65 70, 0) = 0
Cdd =
MGFC10
2017 Fall
Solution to Assignment 2
Question 1
(a)
(i) First possible outcome: Year 0: 6%, Year 1: 7.4%, and Year 2: 9%. Probability: 0.24
If interest rate is 9% at the end of year 2, P2 = 70/0.
1.
Which of the following strategies will give you $0 for stock price less than $40, additional
$2 for every dollar increase in stock price from $40 to $50, and $20 for stock price greater
than $50?
A
MGFC10H3 (Intermediate Finance) Assignment 2.
Prof. Michael Hasler
Department of Management UTSC
Due Date: In class on November 23, 2017
Number of pages including the title page: 20
Please answer all
MGFC10H3 (Intermediate Finance) Solutions to
Assignment 1.
Prof. Michael Hasler
Department of Management UTSC
Due Date: In class on October 5, 2017
Exercise 1. Efficient Frontier (Total of 36 points)
MGFC10H3 (Intermediate Finance) Assignment 1.
Prof. Michael Hasler
Department of Management UTSC
Due Date: In class on October 5, 2017
Number of pages including the title page: 16
Please answer all th
I. INTRODUCTION
Definition of Derivative Securities
Underlying Assets
Exchanges
Market Participants
A long (or long position) is the buying of a security such as a stock, commodity or
currency with th
MGFC30H - Introduction to Derivatives Markets
Instructor:
Office:
Office hrs:
Phone:
Prof. Jason Z. Wei
IC 372
MO 3-4:30pm, WE 5-6pm
416-287-7332
Sept. Dec., 2017
L01: WE 11am-1pm, IC 208
L02: WE
3-5p
Capital Structure: Part I
Does the financing mix of a firm matter?
Can we increase the value of the firm by
replacing its debt with equity? Or vice versa?
If yes, what determine the optimal capital
Capital Structure: Part II
Why dont we observe 100% debt financing
in the real world?
Whats missing?
How firms establish their capital structure
in practice?
1
Outline
Review
Costs of financial D
Valuation and Capital Budgeting for Levered
Firms
12-1
There are three different methods to calculate the NPV
of a project:
Adjusted Present Value (APV) method
Weighted Average Cost of Capital (WAC
Assignment 2 (MGFC30, September 2017)
SOLUTIONS
1.
2.
a.
b.
c.
3.
a.
First calculate the price changes and then regress changes in spot price on changes on
futures price. The regression coefficient is
Assignment 1 (MGFC30, September 2017)
SOLUTIONS
1.
a)
First, calculate the gain and loss for all days. Since he margain account balance on day 2
was $3,000 below the maintenance margin (M), we must ha
Assignment 3 (MGFC30)
Due Date: November 8, 2017 (beginning of class)
(This assignment must be completed individually)
1.
A European call and a European put are written on the same stock with the same
Assignment 1 (MGFC30)
Due Date: October 4, 2017 (beginning of class)
(This assignment must be completed individually)
1.
(Question of Sept 2016 mid-term)
John Watson entered into 20 futures contracts
Note to the Second Assignment
Although this assignment is not for hand-in, you are responsible for all
the questions as far as the mid-term is concerned. The same applies to
the extra exercise questio
Assignment 4 (MGFC30)
Due Date: November 29, 2017 (beginning of class)
(This assignment must be completed individually)
1.
Please go to Yahoo Finance (http:/finance.yahoo.com/)and download the 2015 an
Session 8 Planning and Controlling
By Ross Lu
Convert monthly budgeting to Quarterly budgeting
Distinguish between volume forecast and dollar amount
forecast
Flexible budgeting vs. static budgeting
NO
RSM TEAM CONTRACT
TIPS FOR EFFECTIVE TEAMWORK
Team Name:
Team Number:
Course and Section Number:
SECTION A - PROJECT PLAN
Roles
Project Manager:
Set agendas for meetings.
Ensure clarity on your action
Works Cited
About LCBO. (2016). Retrieved December 7, 2016, from
http:/www.lcbo.com/content/lcbo/en/corporate-pages/about.html
Alcohol prices in Canada, December 2015. (2016). Retrieved December 8, 20
References
Black, J. S., & Stephens, G. K. (1989). The Influence of the Spouse on American
Expatriate Adjustment and Intent to Stay in Pacific Rim Overseas Assignments.
Journal of Management, 15(4), 5
Assignment 1 (MGTC71, 2010)
SOLUTIONS
1.
a)
Since the initial margin is 150(190) = $28,500, this must be the number in the first cell
under Margin Account Balance. The maintenance margin is 150(160) =
Assignment 3 (MGTC71, 2008)
SOLUTIONS
1.
Since the last dividend was paid two months ago, there will be three dividends to be paid
within the options maturity, i.e, within the next 17 months. Precisel
Extra Exercise Questions, MGTC71
1. A box spread is a combination of a bull spread composed of two call options with
strike prices X 1 and X 2 and a bear spread composed of two put options with the
sa
Assignment 2 (MGTC71, 2010)
SOLUTIONS
1.
2.
a.
b.
c.
3.
a.
Regress changes in spot price on changes on futures price to obtain the regression
coefficient, which by definition is the optimal hedge rati
Assignment 4 (MGTC71, 2008)
SOLUTIONS
1.
The initial calculation is the same regardless of the length of the period:
a.
Daily:
n = 21, = 1 / 252. Using the formulas introduced in class, we have the
fo
Assignment 2 (MGTC71, 2008)
SOLUTIONS
1.
2.
a.
b.
c.
3.
a.
Regress changes in spot price on changes on futures price to obtain the regression
coefficient, which by definition is the optimal hedge rati
Assignment 1 (MGTC71, 2008)
SOLUTIONS
1.
a)
Since the margin account balance is equal to the maintenance margin, the total loss of the
first two days must be equal to the difference between the initia
MGFC10H3 (Intermediate Finance)
Class Problems on Dividend Policy
Instructor: Syed W. Ahmed
QUESTION 1:
ABC Corporation, of which Catherine owns 460 shares, will pay a $2 per share dividend one year f