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http://www.coolmath-games.com/lemonade The above link will take you to an interactive game. This game is designed to show you the roles of supply and demand using the fast-paced business setting of lemonade sales. Please read the instructions and play a round or two of the game. After you are done, write a paper reflecting on your experience (250 word minimum). Things to include: What was your strategy while playing? What factors affected your decisions? How was supply and demand shown through this? |
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Economy About Supply and Demand Discussion
Supply and Demand Discussion
Please think of an example from everyday life of an event that caused either the supply or t ...
Economy About Supply and Demand Discussion
Supply and Demand Discussion
Please think of an example from everyday life of an event that caused either the supply or the demand for a product to increase or decrease (please only shift one curve - I would like to keep the examples straight forward). Please take the time to think of a straight-forward (easy) example; it will work much better.
Once you have your example, please complete the following steps for your discussion post:
write a short description of the event explaining if it caused the supply curve OR the demand to shift and in which direction (increase or decrease)
explain how the shift affected the quantity and price in the market for the product.
draw a graph showing:
the original supply and demand curves
the original equilibrium point
the original quantity and price (q1 and p1 are fine - you don't need to add real prices or quantities)
how the curve shifted (right or left)
the new equilibrium point
the new quantity and price (q2 and p2 are fine)
*don't forget to label both axes
**Hand-drawn graphs are totally fine. Please just take a picture and upload it to the discussion board.
**Videos are also great if you want to upload one.
Northeastern University Stark Supply Co Case Study
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contra ...
Northeastern University Stark Supply Co Case Study
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contracts. Your case write-up must be submitted and will be graded.First read the Stark Supply Co. (B) Case (Word) and the Exhibit 2 additional information (Excel) before addressing the questions with the Stark Supply Co.(B) case.In addition, you will need to review the Exhibit 1 additional information (Excel) presented in the (A) case.Case B: Additional InformationYou should treat February 15, 2018 as the date when you are performing your analysis and acting on the analysis (hedging or not hedging).Stark purchased SF 100,000 in the spot market on January 18, 2018 to make the deposit payment required by the cowbell purchase contract.If First Mississippi Bank is lending dollars to Stark Supply Co., Stark is borrowing from First Mississippi Bank and must repay the loan in 90 days. The amount borrowed is a present value and the amount repaid is a future value. The future value represents Stark’s dollar cost of the SF 1,000,000 payment if Stark hedges with a spot transaction.Case B: First read the “B” case, and then address these questions.The following are the questions that go with the (B) Case:1.Which would you recommend to Stark Supply Co. to hedge its foreign exchange risk, a put option or a call option? Explain your choice.(10 points)2.If Stark Supply Co. uses an exchange traded option to hedge its foreign exchange risk, why is it necessary to buy an option with maturity date no earlier than the date of the payable, May 16?Explain.(10 points)3.Consider possible spot rates for the Swiss Franc on May 16.You should consider spot rates at regular intervals. Recall that in February, you do not know the spot rate for the Swiss Franc on May 16.Rather than consider one possible future spot rate, you should consider many.Recall that you have done this for option speculation.Here the objective is hedging, but you can still do the same type of analysis in an excel spreadsheet or with a graph. You need to consider pairs of future spot rates and Total Dollar Cost given hedging with an option. Given an option hedge, calculate the Total Dollar Cost of the cowbell purchase corresponding to each possible future spot rate for the Swiss Franc.You will do these calculations for either all of the call options or all of the put options, depending on how you answered question 1 above. You should do this in an excel spreadsheet.Recall that Stark Supply’s objective is hedging, which means in this case reducing the foreign exchange risk. However, Marks still hasn’t given up on the idea of reducing the Total Dollar Cost resulting in a higher profit margin. Assume that the Swiss Franc will not depreciate to less than $0.98.This roughly corresponds to “low depreciation” defined in the (A) case.Answering this question, you need to recall from the (A) case Stark Supply Co’s track record in terms of its profitability and the competition the company faces.Make sure that your answer is consistent with how you answered questions 3, 4 and 5.You should do this comparison in an excel spreadsheet.(20 points)4. Recall Marks’ discussion of what he would like to achieve in terms of profit on the cowbell purchase. In response to Marks, Grom recommended that Stark Supply hedge with an option. Which of the options would come closest to allowing the potential for Stark Supply to achieve the desired profit of $188,900 (or Total Dollar Cost of $1,111,100) on the cowbell purchase? Explain(10 points)5. The main objective is still hedging.Which option(s) could result in a profit margin of less than 3.1% (or Total Dollar Cost of at least $1,260,000) on the cowbell purchase? Which option(s) does (do) not adequately reduce risk? Explain(10 points)Which one of the 3 options would you recommend to Marks? Explain. (10 points)Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case). Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged. (20 points) Make sure that your answer is consistent with how you answered questions 3, 4 and 5. You should do this comparison in an Excel spreadsheet. Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks' and Stark Supply Co's stated objectives. Which of the 3 do you recommend? Explain. (10 points) Hint: To correctly graph the results, for the chart type in Excel you will need to use an X Y (Scatter) with Straight Lines and Markers. Keep in mind that for your assignment, you should enter data for Total Dollar Cost and Future Spot Rate as the Y-axis and X-axis variables. To create the data, you will select hypothetical Future Spot Rates at regular intervals and then enter the corresponding Total Dollar Cost in the same row. Also, you need to make sure to include the strike prices as some of the future spot rates. On a given row Total Dollar Cost corresponds to the Future Spot Rate.6. Which one of the 3 options would you recommend to Marks?Explain(10 points)7. Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case).Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged.(20 points)8.. Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks’ and Stark Supply Co’s stated objectives.Which of the 3 do you recommend?Explain. (10 points)
MBA6400 Oxford University Investment Banking & Great Recession Case Study 2
U.S.-based investment banks have undergone what many would consider substantive changes in the last eleven years, over the ...
MBA6400 Oxford University Investment Banking & Great Recession Case Study 2
U.S.-based investment banks have undergone what many would consider substantive changes in the last eleven years, over the period 2007 to 2018. This period coincides with the Great Recession, which was a significant driver of changes to investment bank business and characteristics. Such changes include wider fluctuations in mergers and acquisitions, reduced initial public offering underwriting, reductions in staffing, and associated impact on investment bank balance sheets.For this case study, address the following items:1. Identify one of the top ten investments banks as of 2018.2. Provide a concise description of the bank’s core competency with examples of recent activities or transactions. Be sure to provide specific $ data on the magnitude of the bank’s recent activities.3. How has the size of your selected investment bank changed in the last decade? Use $ valuations to illustrate the change. In which investment bank functions did their overall business increase and/or decrease?4. Prepare a balance sheet analysis of the bank, comparing 2007 B/S $ values to the most recently published B/S (either 2017 or 2018). Be sure to include the following items, in Excel spreadsheet format: a. % change in total assets, liabilities, and equity positions over this period b. Past and current leverage position of the investment bank, and % change over this period c. Comparison of book to market value of the bank, 2007 to current value5. Refer to the following short article and address the question in detail: a. Article: Edelmann, C., & Hunt, P. (2017). How the Great Recession Changed Banking. Harvard Business Review Digital Articles, 2–9 b. Question: Compare the financial analysis completed in item #3 above to the main points in the article, including changes in B/S valuation.Answer the following questions for a fictitious public offering, and show all calculations:An investment bank offers underwrites an IPO of up to 18.5m shares for ABC Company at a price of $12.50 per share. Show the $ return to the investment bank under both scenarios:1. The 18.5m shares sell at $13.25 per share.2. What happens if the IPO price is overstated and the shares sell for $12.25 per share?
Microeconomics - Increase in Fixed Costs
Increase in Fixed CostsSuppose a business experiences a sudden increase in its fixed costs. For example, suppose property ...
Microeconomics - Increase in Fixed Costs
Increase in Fixed CostsSuppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have on the following:the firm's AFC (average fixed cost);the firm’s AVC (average variable cost);the firm’s ATC (average total cost); and,the firm’s MC (marginal cost)?What changes, if any, is there likely to be in these same cost CURVES?
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Most Popular Content
Economy About Supply and Demand Discussion
Supply and Demand Discussion
Please think of an example from everyday life of an event that caused either the supply or t ...
Economy About Supply and Demand Discussion
Supply and Demand Discussion
Please think of an example from everyday life of an event that caused either the supply or the demand for a product to increase or decrease (please only shift one curve - I would like to keep the examples straight forward). Please take the time to think of a straight-forward (easy) example; it will work much better.
Once you have your example, please complete the following steps for your discussion post:
write a short description of the event explaining if it caused the supply curve OR the demand to shift and in which direction (increase or decrease)
explain how the shift affected the quantity and price in the market for the product.
draw a graph showing:
the original supply and demand curves
the original equilibrium point
the original quantity and price (q1 and p1 are fine - you don't need to add real prices or quantities)
how the curve shifted (right or left)
the new equilibrium point
the new quantity and price (q2 and p2 are fine)
*don't forget to label both axes
**Hand-drawn graphs are totally fine. Please just take a picture and upload it to the discussion board.
**Videos are also great if you want to upload one.
Northeastern University Stark Supply Co Case Study
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contra ...
Northeastern University Stark Supply Co Case Study
You will complete a write-up for the Stark Supply Co.(B) Case. The case tests your knowledge of hedging with option contracts. Your case write-up must be submitted and will be graded.First read the Stark Supply Co. (B) Case (Word) and the Exhibit 2 additional information (Excel) before addressing the questions with the Stark Supply Co.(B) case.In addition, you will need to review the Exhibit 1 additional information (Excel) presented in the (A) case.Case B: Additional InformationYou should treat February 15, 2018 as the date when you are performing your analysis and acting on the analysis (hedging or not hedging).Stark purchased SF 100,000 in the spot market on January 18, 2018 to make the deposit payment required by the cowbell purchase contract.If First Mississippi Bank is lending dollars to Stark Supply Co., Stark is borrowing from First Mississippi Bank and must repay the loan in 90 days. The amount borrowed is a present value and the amount repaid is a future value. The future value represents Stark’s dollar cost of the SF 1,000,000 payment if Stark hedges with a spot transaction.Case B: First read the “B” case, and then address these questions.The following are the questions that go with the (B) Case:1.Which would you recommend to Stark Supply Co. to hedge its foreign exchange risk, a put option or a call option? Explain your choice.(10 points)2.If Stark Supply Co. uses an exchange traded option to hedge its foreign exchange risk, why is it necessary to buy an option with maturity date no earlier than the date of the payable, May 16?Explain.(10 points)3.Consider possible spot rates for the Swiss Franc on May 16.You should consider spot rates at regular intervals. Recall that in February, you do not know the spot rate for the Swiss Franc on May 16.Rather than consider one possible future spot rate, you should consider many.Recall that you have done this for option speculation.Here the objective is hedging, but you can still do the same type of analysis in an excel spreadsheet or with a graph. You need to consider pairs of future spot rates and Total Dollar Cost given hedging with an option. Given an option hedge, calculate the Total Dollar Cost of the cowbell purchase corresponding to each possible future spot rate for the Swiss Franc.You will do these calculations for either all of the call options or all of the put options, depending on how you answered question 1 above. You should do this in an excel spreadsheet.Recall that Stark Supply’s objective is hedging, which means in this case reducing the foreign exchange risk. However, Marks still hasn’t given up on the idea of reducing the Total Dollar Cost resulting in a higher profit margin. Assume that the Swiss Franc will not depreciate to less than $0.98.This roughly corresponds to “low depreciation” defined in the (A) case.Answering this question, you need to recall from the (A) case Stark Supply Co’s track record in terms of its profitability and the competition the company faces.Make sure that your answer is consistent with how you answered questions 3, 4 and 5.You should do this comparison in an excel spreadsheet.(20 points)4. Recall Marks’ discussion of what he would like to achieve in terms of profit on the cowbell purchase. In response to Marks, Grom recommended that Stark Supply hedge with an option. Which of the options would come closest to allowing the potential for Stark Supply to achieve the desired profit of $188,900 (or Total Dollar Cost of $1,111,100) on the cowbell purchase? Explain(10 points)5. The main objective is still hedging.Which option(s) could result in a profit margin of less than 3.1% (or Total Dollar Cost of at least $1,260,000) on the cowbell purchase? Which option(s) does (do) not adequately reduce risk? Explain(10 points)Which one of the 3 options would you recommend to Marks? Explain. (10 points)Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case). Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged. (20 points) Make sure that your answer is consistent with how you answered questions 3, 4 and 5. You should do this comparison in an Excel spreadsheet. Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks' and Stark Supply Co's stated objectives. Which of the 3 do you recommend? Explain. (10 points) Hint: To correctly graph the results, for the chart type in Excel you will need to use an X Y (Scatter) with Straight Lines and Markers. Keep in mind that for your assignment, you should enter data for Total Dollar Cost and Future Spot Rate as the Y-axis and X-axis variables. To create the data, you will select hypothetical Future Spot Rates at regular intervals and then enter the corresponding Total Dollar Cost in the same row. Also, you need to make sure to include the strike prices as some of the future spot rates. On a given row Total Dollar Cost corresponds to the Future Spot Rate.6. Which one of the 3 options would you recommend to Marks?Explain(10 points)7. Now compare the spot transaction hedge (from the (A) Case), the option hedge that you chose in question 6, and remaining unhedged (from the (A) Case).Consider future spot rates at regular intervals (possible spot rates on May 16). For each possible future spot rate, calculate the Total Dollar cost for 1) the spot transaction hedge, 2) the option hedge, and 3 unhedged.(20 points)8.. Consider risk, Total Dollar Cost, and how well each of the 3 (spot transaction hedge, option hedge, unhedged) achieves Marks’ and Stark Supply Co’s stated objectives.Which of the 3 do you recommend?Explain. (10 points)
MBA6400 Oxford University Investment Banking & Great Recession Case Study 2
U.S.-based investment banks have undergone what many would consider substantive changes in the last eleven years, over the ...
MBA6400 Oxford University Investment Banking & Great Recession Case Study 2
U.S.-based investment banks have undergone what many would consider substantive changes in the last eleven years, over the period 2007 to 2018. This period coincides with the Great Recession, which was a significant driver of changes to investment bank business and characteristics. Such changes include wider fluctuations in mergers and acquisitions, reduced initial public offering underwriting, reductions in staffing, and associated impact on investment bank balance sheets.For this case study, address the following items:1. Identify one of the top ten investments banks as of 2018.2. Provide a concise description of the bank’s core competency with examples of recent activities or transactions. Be sure to provide specific $ data on the magnitude of the bank’s recent activities.3. How has the size of your selected investment bank changed in the last decade? Use $ valuations to illustrate the change. In which investment bank functions did their overall business increase and/or decrease?4. Prepare a balance sheet analysis of the bank, comparing 2007 B/S $ values to the most recently published B/S (either 2017 or 2018). Be sure to include the following items, in Excel spreadsheet format: a. % change in total assets, liabilities, and equity positions over this period b. Past and current leverage position of the investment bank, and % change over this period c. Comparison of book to market value of the bank, 2007 to current value5. Refer to the following short article and address the question in detail: a. Article: Edelmann, C., & Hunt, P. (2017). How the Great Recession Changed Banking. Harvard Business Review Digital Articles, 2–9 b. Question: Compare the financial analysis completed in item #3 above to the main points in the article, including changes in B/S valuation.Answer the following questions for a fictitious public offering, and show all calculations:An investment bank offers underwrites an IPO of up to 18.5m shares for ABC Company at a price of $12.50 per share. Show the $ return to the investment bank under both scenarios:1. The 18.5m shares sell at $13.25 per share.2. What happens if the IPO price is overstated and the shares sell for $12.25 per share?
Microeconomics - Increase in Fixed Costs
Increase in Fixed CostsSuppose a business experiences a sudden increase in its fixed costs. For example, suppose property ...
Microeconomics - Increase in Fixed Costs
Increase in Fixed CostsSuppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have on the following:the firm's AFC (average fixed cost);the firm’s AVC (average variable cost);the firm’s ATC (average total cost); and,the firm’s MC (marginal cost)?What changes, if any, is there likely to be in these same cost CURVES?
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