A firm has daily cash variance of 15,000 and the transactions cost for buying/selling securities is $50. The annual opportunity cost of holding cash is 6%. The minimum allowable cash balance is $50,000.

1. The target cash balance is ?

a. 50,000 b. 55,200 c. 37,163 d. 87,163 e. 75,000

17. The upper limit (H) for the cash balance is ____________.

a. 50,000 b. 161,491 c. 87,163 d. 37,163 e. 261,491

18. The average cash balance is ___________.

a. 50,000 b. 161,491 c. 87,163 d. 99,452 e. 261,491