Fin 320
Stock Trak Trading Exercise
Fall 2010
Objective: The objective of this assignment is to motivate student interest in financial markets
through handson experience managing an investment portfolio, making trades, and tracking
investment performanc
Fin 320
Stock Trak Trading Exercise
Fall 2010
2. Send in the registration form with a check for $28.95 as soon as possible to get the
paperwork completed (or you can register more quickly on the web with a credit card).
Specific Requirements:
1. Register
Fin 320D
Quiz 3
Fall 2010
1.
A market anomaly refers to
a.
b.
a volatile shock to the market that is sharp but not persistent
a price or volume event that is inconsistent with historical price or volume trends
price behavior that differs from the behavior
.
Size of Coupon and Interest Rate
Sensitivity
Bond Duration and Interest Rate
Sensitivity
Low coupon bonds have ~
rate sensitivity than high
upon bonds.
interest
The sensitivity of a bond's value to changing
interest rates depends upon
eric;
co.sn Icfw
Finance 320 Problem Set #2
1. Sarah bought a stock at a price of $23.50. After she owned the stock for 3 months she
received a quarterly dividend of $1.00. She sold the stool: for, $26.00 immediately
thereafter. What was her quarterly rate of return? «re
Chapter 2
1.
Common stock is an ownership share in a publicly held corporation. Common shareholders have
voting rights and may receive dividends. Preferred stock represents nonvoting shares in a corporation,
usually paying a fixed stream of dividends. Whi
,
Brokerage Accounts
You can choose from two types of accounts to open
 Cash account
 Margin account
Buying & Selling
Securities
To

open an account. you need to choose a broker
Fullservice
Discount
Deep discount
Commissions: Large Online Brokers
Co
Problem Sets
,
I
,I
Finance 320 Problem Set #7
I.
The stock of Merton Inc. currently has a required rate of return of 15% and its dividends are growing at the rate
of 3% per year. If Merton just paid a dividend of $1 this year, what is the current price o
=
Portfolio Duration and Immunization
Portfolio Duration and Immunization
Example:
You must make a balloon payment of$IO.OOO
on your house in 7 years and would like to set aside
enough funds to meet this obligation when it arrives.
Suppose you spend the
Interest Rate Swaps
Contingent Immunization
Example:
Suppose you are managing a $100
million bond portfolio. Your investment horizon
is 3 years, interest rates are currently 10%, and the
terminal value of the portfolio in 3 years must not
drop below $112
I
\
cfw_
,L_L~~
~ 

~
Finance 320 Problem Set #8
1.
You wish to purchase a 20year bond that has a maturity value ofSlooo and makes semiannual interest
payments of $40. If you require a 10% yield to maturity on this investment, what is the maximum
Equity, Options, & Tbills
Borrowing and Lending
We can express the payoffs as a percentage return on
the original investment:
Suppose a zerocoupon bond has a face value $X
The present value of the bond is then Xe"
If I buy (long) the bond, my holdi
The Executive's CoUared Portfolio Payoff
The Executive's Portfolio
(i.e. portfolio value for a given ending stock price)
Payoff
Current
Portfolio:
01
Cash Generated
Today:
not really.
Our executive collecls the current stock price, So,
today in cash  j
Call Option Example
Standard Normal Distribution
So = 100
x
r = .10
ExampJe:
T = .25 (quarter)
= 95
N(d) ~ Shaded
area
cr = 50
What is the value of the call option?
d _ In(l 00/95)+(.1 +.5' /2).25
,
.5.[25
.43
d, = d, .5.[25 =.18
o
Probabilities
from N
Futures and Forwards
Futures Markets
Forward An agreement calling for a future delivery
of an asset at an agreedupon price. No money
changes hands today.
Futur~i1ar
~ a forward, but has highly
features. No money changes
hands today (but margin is requ
Payoffs from Forwards & Futures
Payoff
Payoff Sr  Fo
Payoffs
Suppose that you agree to sell an ounce of gold in
three months for $300.
]. You
You
o
a~
If the ending gold price is $250
of gold that is worth $250 for $300.
f:I;) .
If the ending gold pr
_.
.
.__._
Price of Futures with Parity
Price of Futures with Parity
Since the strategies have the same flows at time T,
the futures price has to equal the carrying cost of
the stock:
If a stock. pays a constant dividend D and has a
dividend yieid d
The Executives Collared Portfolio Payoff
(i.e. portfolio value for a given ending stock price)
Payoff
Stock Price
Yes, I own stock but not really.
9 Our executive collects the curre _stock price, So,
today in cash just like $11!? the stock.
0 The val
Cassidy Stork
StockTrak
Final Summary
April 11, 2016
StockTrak Final Summary
Throughout our Finance 320 class we have participated in an online Global Portfolio
Simulations that features stocks, options, futures, bonds, mutual funds, commodities, and
much
Cassidy Stork
MGMT 370
Extra Credit
December 8, 2015
Firm Resources and Sustained Competitive Advantage
This research article all about understands the different sources of sustained
competitive advantage that has become a major area of research in strate
Cassidy Stork
MGMT 370
Extra Credit
December 8, 2015
When Does Employee Turnover Matter?
The main question of this research article is if employee turnover affects the
productive capacity of groups, work units, and organization. According to the article
t
Caterpillar Inc. Vs John Deere
— Matt Smith, Carter Eighmey, _
Michael Stevens, Cassidy Stork,
& Kelse Behnke Farm and Construction Machinery
Caterpillar Inc. John Deere Deere & Company
a NYSE: CAT 0 NYSE: DE
0 DowJones Component 0 Established 1837
o Est
Chapter 14  Bond Prices and Yields
Chapter 14 Bond Prices and Yields Answer Key
Multiple Choice Questions
1. The current yield on a bond is equal to _.
A. annual interest payment divided by the current market price
B. the yield to maturity
C. annual inte
a. Calculate the duration of the liability.
b. What is the duration of the zerocoupon bond? What is the duration of the
perpetuity?
c. What proportion of your investment should you put into the zerocoupon bond
and what proportion in the perpetuity to im
Department of Accounting
Principles of Federal Income Taxation
IOWA STATE UNIVERSITY
ACCT 485 (Fall 2016)
CHAPTER 11 SUPPLEMENTAL PROBLEMS
Problem 1
Rob performs services for Dave. In ascertaining whether Rob is an employee or an
independent contractor, d