Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
HW 5
Sampling Distributions and Estimation1
Note: Only the rst 4 problems will be graded. The rest are for practice.
Show your work! Also, please express numeric answers in either decimal form or simplied (that is,
reduced) fraction form. Nonreduced frac
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
BlackScholes Worksheet for Foreign Currency Op
(the User must change the yellow inputs)
Inputs
Spot rate (DC/FC e.g. USD/EUR)
Strike price (same units as Spot)
volatility (annualized)
domestic interest rate (annualized)
foreign interest rate (annualized)
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
FX options 
Foreign Currency Options
The buyer of an option is termed the holder, while
the seller of the option is referred to as the writer
or grantor.
Every option has three different price elements:
The exercise or strike price: the exchange rate
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
FX options 
Foreign Currency Options
The buyer of an option is termed the holder, while
the seller of the option is referred to as the writer
or grantor.
Every option has three different price elements:
The exercise or strike price: the exchange rate
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
FDI
Sustaining and Transferring Competitive
Advantage
In deciding whether to invest abroad, management must first
determine whether the firm has a sustainable competitive
advantage that enables it to compete effectively in the home
market.
The competiti
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
FDI
Sustaining and Transferring Competitive
Advantage
In deciding whether to invest abroad, management must first
determine whether the firm has a sustainable competitive
advantage that enables it to compete effectively in the home
market.
The competiti
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
FX options 
Foreign Currency Options
The buyer of an option is termed the holder, while
the seller of the option is referred to as the writer
or grantor.
Every option has three different price elements:
The exercise or strike price: the exchange rate
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
1
A public sector project often has benefits and costs that extend
over many years. Analysts attempting to assess the economic
viability of a project will want to compare all of its benefits and
costs whenever they occur during its economic life.
To do th
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
HW 8
Ordinary Least Squares
Note: This homework will not be graded.
For this homework, use the linear regression model we used in class. That is, suppose that X and Y are
related by the population model
Y = 0 + 1 X +
which satises the assumptions of OLS.
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
Midterm 1
Econ 2222A
October 10, 2012
1.5 hours
7pm  8:30pm
Instructions:
Show your work
Express numeric answers in either decimal form or simplied (that is, reduced) fraction form. Nonreduced fractions may be marked as incorrect.
Use of only nongrap
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
Midterm 1
Econ 2222A
October 12, 2011
Instructions:
Show your work
Express numeric answers in either decimal form or simplied (that is, reduced) fraction form. Nonreduced fractions may be marked as incorrect.
Use of only nongraphic (i.e. nonprogramma
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
Homework 1, Econ 2222A, Fall 20121
Due September 20, in class.
Show your work! Also, please express numeric answers in either decimal form or simplied (that is,
reduced) fraction form. Nonreduced fractions may be marked as incorrect.
1. The following tab
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
HW 2
Due September 27, by 5pm in my oce. You may also turn it in during class.
Show your work! Also, please express numeric answers in either decimal form or simplied (that is, reduced)
fraction form. Nonreduced fractions may be marked as incorrect.
1. I
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
HW 3
Due October 4, in class, or in my oce by 5pm.
Show your work! Also, please express numeric answers in either decimal form or simplied (that is, reduced) fraction form. Nonreduced fractions may be marked as incorrect.
1.1 Discrete Random Variables Th
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
HW 4
Covariance, Correlation, and Continous Random Variables1
Show your work! Also, please express numeric answers in either decimal form or simplied (that is,
reduced) fraction form. Nonreduced fractions may be marked as incorrect.
1. A college booksell
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
)5? .3: #
W32 w>=
We wt.) ,1 82,0. 0:. 1240 7: Cf I 110
3.0. c; ' ms
4.9m: Hub
r H1
W m) _ 527535 I090 , 0
ED 0.: 4225
C + at"; 05
W m = \ [ i...,5.
q
/
03% '/
W Z )s Wmm 2% 353270 w w
w ,0 )4 [MM UN'TS
500 '
. %.4 0.7.6?) =
. V/
to, 6
Western University (Ontario)  Also known as University of Western Ontario
ECON 2122

Spring 2014
HW 6
Estimation (Part 2)
Due Nov 15, 2012
Only the rst 2 questions are graded.
Show your work! Also, please express numeric answers in either decimal form or simplied (that is,
reduced) fraction form. Nonreduced fractions may be marked as incorrect.
1. T