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Qualitatively consider what might happen to the theoretical price of an option if the price of the underlying doesn't follow a geometric Brownian motion


Graph the return to expiration of a short exposure to a European call option


In its first year, “Abol Buna Co” had the following experience

Sales = 25,000 units Selling price = br. 100

TVC = br. 1,500,000 TFC = br. 350,000

Required:

1. Develop Revenue, cost & profit functions for the co. in terms of quantity.

2. Find the Breakeven point in terms of quantity

3. Convert the cost equation in terms of quantity in to a cost equation in terms of

revenue

4. Find the Breakeven revenue


Pamela borrows an amount of money for emergency house repairs. The interest on the loan is compounded


quarterly. After four years the debt accumulated by R7 980,00 to the amount of R32 923,00. The yearly


interest rate, expressed as a percentage and rounded to two decimal places, at which the money was borrowed,


is


When his son was three years old, Vuyisanani made a deposit of R16 200,00 in the bank. The investment


grew at a simple interest rate and when Vuyisanani’s son was 22 years old, the value of the investment was


R46 980,00. Had the interest been 1,25% less, how much interest would he have lost?


[1] R3 847,50


[2] R26 932,50


[3] R19 338,68


[4] R4 455,00

Pamela borrows an amount of money for emergency house repairs. The interest on the loan is compounded


quarterly. After four years the debt accumulated by R7 980,00 to the amount of R32 923,00. The yearly


interest rate, expressed as a percentage and rounded to two decimal places, at which the money was borrowed,


is


[1] 1,75%.


[2] 8,00%.


[3] 9,26%.


[4] 7,00%

An amount of money is invested at 8% interest per year, compounded quarterly. After a number of years, the


accumulated amount in the account is R7 365,00. The investment earned R2 000,00 interest in this period.


If the accumulated amount is left in the account (the interest rate remains the same) for another period that


is one year longer than the first period, the accumulated amount in the account will then be


[1] R10 312,78


[2] R29 363,56


[3] R10 944,00


[4] R10 699,8

"EBIDTA is Rs. 725 crs., depreciation is Rs. 59 crs. and ammortisation amount is Rs. 14 crs. Loans given amount to Rs. 240 crs. and the networth of the company is Rs. 825 crs. Calculate Return on Capital Employed of the company."


At cryptobank a $100,000 loan for one year has a quoted interest rate of 10.50% payable annually but with a compensating balance of 20%. At Mo bank a $100,000 discount loan has a quoted interest rate of 7.90%payable annually. The loan at Mo bank is _____ per year cheaper than at cryptobank

At cryptobank a $100,000 loan for one year has a quoted interest rate of 10.50% payable annually but with a compensating balance of 20%. At Mo bank a $100,000 discount loan has a quoted interest rate of 7.90%payable annually. What is the loan offer in both banks?

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