Calculate 

(a) Averagequarterly cash flow (b) Standard deviation of the quarterly cash flows. (c) As of March 2021, Verizonhad availablecash and short-term investments of $10,205 million. Calculate lambda and the probability of illiquidity. (d) In addition to the available cash and short-term investments mentioned in part (c), Verizon has a credit line of $9,500 million. Calculate lambda and the probability of liquidity when this credit line is included.

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Quarter Cash Flow 1 Ending (in millions) 2 Dec-18 $ 3,341 3 Mar-19 $ 2,709 4 Jun-19 $ 4,961 5 Sep-19 $ 6,447 6 Dec-19 $ 2,792 7 Mar-20 $ 3,340 8 Jun-20 $ 8,561 9 Sep-20 $ 4,416 10 Dec-20 $ 5,133 11 Mar-21 $ (39,583) Quarter Cash Flow 1 Ending (in millions) 2 Dec-18 $ 3,341 3 Mar-19 $ 2,709 4 Jun-19 $ 4,961 5 Sep-19 $ 6,447 6 Dec-19 $ 2,792 7 Mar-20 $ 3,340 8 Jun-20 $ 8,561 9 Sep-20 $ 4,416 10 Dec-20 $ 5,133 11 Mar-21 $ (39,583)