# Asignment Essay

1467 Words Aug 4th, 2013 6 Pages
QUESTION 2
For the Starbucks Company www.starbucks.com 1. What is the Net Present Value of the project? 2. What is the Internal Rate of Return of the project? 3. How are these figured out?

QUESTION 1-4

1. (Forward contract payout) Construct a delivery date profit or loss graph for a long position in a forward contract with a delivery price of\$75. Analyze the profit or loss for values of the underlying asset ranging from \$55 to \$95.

a. Which of these graphs shows the correct profit/loss line for the long forward contract on the delivery date, T?

QA. GraphD QB. GraphA QC. GraphB QD. GraphC

Graph A GraphB j I j I
\$2 \$3

\$2 \$1 u
1 1\$1

.... \$0
0..,

\$85 \$95 .... \$
(Use a negative sign if there is a loss and round to the nearest dollar.)

2. (Forward contract payout) Construct a delivery date profit or loss graph for a short position in a forward contract with a delivery price of\$75. Analyze the profit or loss for values of the underlying asset ranging from \$55 to \$100.

a. Which of these graphs shows the correct profit/loss line for the short forward contract on the delivery date, T?

QA. GraphD QB. GraphC QC. GraphB
QD. GraphA

i i i i
Graph A

\$2

1 1 1 1 u u
\$1

.... ....

\$30

GraphB

.., ..

-\$1

0.., \$85 \$95 0..,

j -\$1 j -\$2 -\$3 Price ofUnderlying Asset (on date 1) Price of Underlying Asset (on date 1)

GraphC GraphD 1 1 1 1
J \$2 j \$1
\$1

.... .... "..' "' 0 \$95 \$105 0

-\$1 -\$1 J: J: -\$2 -\$2 Price ofUnderlying Asset (on date 1) Price of Underlying Asset (on date 1)

When the delivery price of the short forward contract is \$75, and the actual price at the time of delivery is
\$55, there is a [profit/loss] of \$0. (Use a negative sign if there is a loss and round to the nearest dollar.)

When the delivery price of the short forward contract is \$75, and the actual price at the time of delivery is
\$70, there is a [profit/loss] of \$0. (Use a negative sign if there is a loss and round to

## Related Documents

• ###### Essay on Asignment

Home Work Chapter 1 to 12 Book Reference: Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E., & (2008). Designing and managing the supply chain: Concepts, strategies, and cases (3rd edition). United-States: McGraw-Hill. Excel sheet: Student Name: Shaheen Sardar Department: Industrial and Management Engineering, Hanyang University, South Korea. Home Work 1 Chapter 1: Introduction to Supply Chain Management Problem 1: Consider the supply chain for a domestic automobile. a…

Words: 22691 - Pages: 91
• ###### Asignments Essay

------------------------------------------------- Unit 5 Assignment Template: Name: - Course Number: - Section Number: - Unit Number: - 5 Date: - ---------------------------------- General Instructions for all Assignments----------------------------------- 1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format: Course number_section number_LAST_FIRST_ unit number 2. At the top of the template…

Words: 1422 - Pages: 6

Oracle® Database Concepts 10g Release 2 (10.2) B14220-02 October 2005 Oracle Database Concepts, 10g Release 2 (10.2) B14220-02 Copyright © 1993, 2005, Oracle. All rights reserved. Primary Author: Michele Cyran Contributing Author: Paul Lane, JP Polk Contributor: Omar Alonso, Penny Avril, Hermann Baer, Sandeepan Banerjee, Mark Bauer, Bill Bridge, Sandra Cheevers, Carol Colrain, Vira Goorah, Mike Hartstein, John Haydu, Wei Hu, Ramkumar Krishnan, Vasudha Krishnaswamy, Bill Lee, Bryn Llewellyn…

Words: 199767 - Pages: 800
• ###### Mr Asignment Essay

A comparative analysis of Operation management of Mother Dairy and Amul Submitted by: Group 7 Sayak Ray-159 Pranaw Gautam-160 Vineet Gautam-162 Pardep Jindal-169 Monika Agarwal-170 Shruti Gupta-178 Executive Summary India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters…

Words: 11205 - Pages: 45
• ###### Cis 333 Asignment 2 Essay

Identifying Potential Risk, Response, and Recovery during Gaming Software Development Bandon Wilson Professor Ali Abedin CIS 333 November 25, 2014 Internet bots, also known as web robots, WWW robots or simply bots, are software applications that run automated tasks over the Internet. Typically, bots perform tasks that are both simple and structurally repetitive, at a much higher rate than would be possible for a human alone. The largest use of bots is in web spidering, in which an automated…

Words: 996 - Pages: 4
• ###### Psy 100 Week 8 Assignment 2 – Adjustment Case Study – New Updated Work

401 Week 4 DQ 1, BUS 401 Week 4 DQ 2, BUS 402 WEEK 4, BUS 405 (Principles of Investment), BUS 475, BUS 475 Final Exam 100 MCQS, BUS 475 Final Exam 600 MCQS, BUS 599 (STRAYER), BUS 599 Assignment, BUS 620 Week 4, BUS 640 Week 1, BUS499 Asignment 4, BUS508 Asignment 1, BUS499 Assignment 3 PSY 100 WEEK 8 ASSIGNMENT 2 – ADJUSTMENT CASE STUDY – NEW UPDATED WORK To purchase this Click here: http://www.activitymode.com/product/psy-100-week-8-assignment-2-adjustment-case-study-new-updated-work/ Contact…

Words: 1206 - Pages: 5
• ###### Bshs 332 Entire Course Essay

401 Week 4 DQ 1, BUS 401 Week 4 DQ 2, BUS 402 WEEK 4, BUS 405 (Principles of Investment), BUS 475, BUS 475 Final Exam 100 MCQS, BUS 475 Final Exam 600 MCQS, BUS 599 (STRAYER), BUS 599 Assignment, BUS 620 Week 4, BUS 640 Week 1, BUS499 Asignment 4, BUS508 Asignment 1, BUS499 Assignment 3 Activity mode is a not for profit organization that aims to provide quality study notes to the students in order to ace their studies. BSHS 332 ENTIRE COURSE To purchase this Click here: http://www.activitymode…

Words: 1356 - Pages: 6
• ###### Hrm 531 Week 4 Individual Assignment Essay

401 Week 4 DQ 1, BUS 401 Week 4 DQ 2, BUS 402 WEEK 4, BUS 405 (Principles of Investment), BUS 475, BUS 475 Final Exam 100 MCQS, BUS 475 Final Exam 600 MCQS, BUS 599 (STRAYER), BUS 599 Assignment, BUS 620 Week 4, BUS 640 Week 1, BUS499 Asignment 4, BUS508 Asignment 1, BUS499 Assignment 3. HRM 531 WEEK 4 INDIVIDUAL ASSIGNMENT To purchase this visit here: http://www.activitymode.com/product/hrm-531-week-4-individual-assignment/ Contact us at: SUPPORT@ACTIVITYMODE.COM HRM 531 WEEK 4 INDIVIDUAL…

Words: 1056 - Pages: 5
• ###### Essay about Bis 219 Complete Class

401 Week 4 DQ 1, BUS 401 Week 4 DQ 2, BUS 402 WEEK 4, BUS 405 (Principles of Investment), BUS 475, BUS 475 Final Exam 100 MCQS, BUS 475 Final Exam 600 MCQS, BUS 599 (STRAYER), BUS 599 Assignment, BUS 620 Week 4, BUS 640 Week 1, BUS499 Asignment 4, BUS508 Asignment 1, BUS499 Assignment 3 Activity mode is a not for profit organization that aims to provide quality study notes to the students in order to ace their studies. BIS 219 COMPLETE CLASS To purchase this Click here: http://www.activitymode…

Words: 984 - Pages: 4
• ###### Bus 210 Complete Class Essay

401 Week 4 DQ 1, BUS 401 Week 4 DQ 2, BUS 402 WEEK 4, BUS 405 (Principles of Investment), BUS 475, BUS 475 Final Exam 100 MCQS, BUS 475 Final Exam 600 MCQS, BUS 599 (STRAYER), BUS 599 Assignment, BUS 620 Week 4, BUS 640 Week 1, BUS499 Asignment 4, BUS508 Asignment 1, BUS499 Assignment 3 Activity mode is a not for profit organization that aims to provide quality study notes to the students in order to ace their studies. BUS 210 COMPLETE CLASS To purchase this Click here: http://www.activitymode…

Words: 2172 - Pages: 9