question 3

and vertical intercepts? c. Algebraically find the sales amount for which the compensation would be the same for each company. What is this compensation? Problem 2: Betty, Bob, and Bertha all invest for a term of 18 months. Betty achieves a 15% per annum simple rate of return. Bob buys simple discount rate. Bertha buys a painting for $811.16 and sells it for $1000 18 months later. Algebraically determine who did best, who did next, and who did worst. an IOU and achieves a 12% per annum Problem 3: Betty and Bob buy a photo from Bertha. They wish to make three payments - one at 4 months, the next at 6 months, and the last at 12 months from now. The payment at 6 months should be 50% of the payment at 4 months and the payment at 12 months should be 150% of the payment at 6 months. If they all value the photo at $5,000 now then algebraically find how much each payment should be; based on a 12 % per annum simple interest rate? Problem 4: Betty and Bob are short 200 shares of XYZ (@48 and long 5 October 50 calls @3. Analyze the value, W, and P&L, Y, of this position at expiration. Be sure to include formulae for W and Y. Be sure to include a table for W and Y at expiration for exercise prices with 5 point intervals. Be sure to draw the graph ofY versus X, the stock price. Algebraically determine the break-even points. Problem 5: Problem 22 from Problem Set 1 in Section 8 of Day Of The Quants. Be sure to include a table analysis