Suppose you think FedEx stock is going to appreciate substantially in value in the next 6 months. Say thestock’s current price, S0, is $120, and the call option expiring in 6 months has an exercise price, X, of $120and is selling at a price, C, of $18. With $14,400 to invest, you are considering three alternatives.

a. Invest all $14,400 in the stock, buying 120 shares.

b. Invest all $14,400 in 800 options (8 contracts).

c. Buy 100 options (one contract) for $1,800, and invest the remaining $12,600 in a money market fundpaying 6% in interest over 6 months (12% per year).

What is your rate of return for each alternative for the following four stock prices 6 months from now?

Tiana daniels enterprise’s trial balance as at december 31, 2016 did not balance. on february 15, 2017 the following errors were detected: errorsi. water rates had been undercast by $2, 000.  ii. a cheque paid to yvonne walch of $2, 680 had been posted to the credit side of her account.  iii. discount received total of $1, 260 had been posted to the debit side of the discount allowed account as $1, 620.  iv. rent paid in the amount of $24, 000 had been posted to the credit of the rent received account.  v. wayne returned goods valuing $1, 680 to daniels enterprise but had been completely omitted from the books.    required: 1. prepare the journal entries to correct the errors.  (narrations required)                    14.5 marks  2.    prepare the suspense account showing clearly the original trial balance error.          8 marks

Melissa buys an iphone for $240 and gets consumer surplus of $160. a. what is her willingness to pay? b. if she had bought the iphone on sale for $180, what would her consumer surplus have been?

In command economy, who makes production decisions? a. workers b. producers c. consumers d. the government