write a research paper of minimum of 8 pages double-spaced,
The paper should have a title page with the following information:
Name of the University
Course Title and Number
Name of Instructor
Title of the Paper
Name of the Student
The paper should
Ch. 19 Q2, 10, 12, 14, 15, Web Ex2. Ch. 20 Q12, 13, 14, 15, P6, Web Ex 1.
Comptroller of the Currency
Federal Reserve System
State banking authorities
Federal Reserve System
The rise in inflation and the resulting higher interest
Ch. 14 P 8, 9, 13, Ch. 15 Q 11, 12, 13, P 2, 6, 16
The required payment for the 1st year is N = 360; I = 2/12; PV = 250,000; FV = 0. PMT = $924.05.
The required payment for the 2nd year is N = 348; I = 4.5/12; PV = $243,855.29; FV = 0. PMT = $1,255.
Ch. 1 Q. 4, 5, 8, and 9. Ch. 2 Web Ex 1 and 2
No. People who borrow to purchase a house or a car are worse off because it costs them more to finance
their purchase; however, savers benefit because they can earn higher interest rates on their savings.
Ch. 9 Q 13, 14, Web Ex 1, 2. Ch. 10 Q 3, 5, P 1, 6, 8
False. The Fed is still subject to political pressure, because Congress can pass legislation limiting the Feds
power. If the Fed is performing badly, Congress can make the Fed accountable by pas
Ch. 11 Q: 7, 12, 13, 14, and 15, Web Ex 1. Ch. 12 P: 1, 2, 7, and 8.
Businesses both invest and borrow in the money markets. They borrow to meet short-term cash flow
needs, often by issuing commercial paper. They invest in all types of money market
Ch. 7 Q. 2, 3, & 7, Web Ex 1 &2. Ch. 4 Students bring to class a written one page update on current U.S.
interest rates and discuss/present.
By pooling many small deposits together and specializing in loan risk assessment and other forms
BLACK SCHOLES OPTIONS PRICING MODEL Sample Problem
The first problem is a demonstration on how to plug in the numbers and
calculate the value of a Call option. The second problem is a demonstration
on how to calculate the value of a Put option. Refer to F
CAPITAL MARKET THEORY [Single versus Multi-factor models]
Calculating the Required Rate of Return
Business valuation utilizes capital market theory with single
factor (CAPM) and multi-factor (APT) models for estimating
the required rate of return used to
Black Scholes Options Pricing Model where C = value of call
option; P = value of put option; N() = cumulative normal
density function; S = market price of stock on date call
option is written; X = call options exercise or strike price; =
OPTIONS PRICING SUMMARY Instructor Notes
Simple Option Pricing Model where:
C: Call Option
P: Put Option
S: Stock Price
X: Exercise or Strike Price
Under the Simple Model, C (Call Option) is in the money or
has positive intrinsic value when S >
Chapter 1: Question 11
The basic activities of banks are to be financial intermediaries accepting deposits and making
Chapter 2: Question 2
Yes, I am better off by taking the loan. If the loan amount is 5,000 and my interest is 4,500(
June 12, 2016
Chapter 7: Questions 4 & 10
4.How do standard accounting principals help financial market work more efficiently?
Having standardized accounting principals makes information about a company reliable and
available. This helps com
June 17, 2016
Chapter 13: Questions 2 & 5
2. Identify the cash flows available to an investor in stock. How reliably can these cash flows be
estimated? Compare the problem of estimating stock cash flows to estimating bond cash flows.
Ch. 16 Q 1, 2, 3, Web Ex 2. Ch. 17 Q 13, 14, 15, P 3, Ch. 18 P 1, 2
The purchase of dollars involves a sale of foreign assets that means that international reserves fall.
However, the offsetting open market purchase means that the monetary base and