Assignment 4: Written Paper 3 (Week 6)

Assignment 4: Written Paper 3 (Week 6) In 2-3 pages, compare and contrast the European and North American freight transportation systems, globalized trade, and global policy implications . Lastly, reviewing the future research, what part do you find interesting and why? Submission Instructions: Please attach the assignment in Word Format Save and submit paper with the following name line: STUDENTLASTNAMECOURSE#ASSGN# All written submissions should be submitted in a font and page set-up that is readable, neat. and adheres to the APA format, which is described below. Typewritten in double-spaced format with a readable style and font and submitted inside the electronic classroom (unless classroom access is not possible and other arrangements have been approved by the professor). Arial 11 or 12-point font or Times New Roman styles. Page margins Top, Bottom, Left Side and Right Side = 1 inch, with reasonable accommodation made for special situations and online submission variances. Paragraph spacing should be zero, zero, double, without space between paragraphs References should be a minimum of two references, except where additional references are specified (APA format) Citations - review University requirements, as well as plagiarism guidelines Abstract and table of contents are not required except as specified in assignment instructions http://wpc.242f.edgecastcdn.net/00242F/academics/multimedia/_live/EDU/APA_Interactive/home.html http://apus.campusguides.com/writing?hs=a&gid=1163 Mr. Curtis document Your firm has a well-respected economic research staff. The staff members have been successful in developing econometric models that can predict macroeconomic variables with a surprisingly degree of accuracy. The economic research staff would like to know which variables to monitor if options are ultimately used by the firm. Write a 1-2 page document to Mr. Curtis explaining how the listed variables impact the prices of call options and what the associated theory is behind each relationship: •. Stock price •. Risk-free rate •. Exercise price •. Stock volatility It is also important to recognize if put-call parity conditions are being met; if not, an arbitrage opportunity exists for the firm. In the following situation, identify whether or not an arbitrage opportunity exists if • The call price = $1.15. • Exercise price = $22.50. • Time to expiration = 60 days. • Put price = $0.55. • Annual interest rate = 12%. The stock pays 0 dividends.