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Exercice 4 Here is the available information relating to CRYSTO inc. : Standard deviation of daily fluctuations in cash: $ 3.500 ransaction and management fees

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Exercice 4 Here is the available information relating to CRYSTO inc. : Standard deviation of daily fluctuations in cash: $ 3.500 ransaction and management fees incurred by each purchase or sale of short-term securities: S 210 Daily interest rate on short-term investments: 0,00329% lower limit of cash: 2 100 5 a. In Miller and Orr's model, what are the variables that determine the target level of cash? b- Determine the target level of cash for CRYSTO inc. using the Miller and Orr Model. c- Calculate the upper limit of the cash. What should the business do when the cash balance reaches this upper limit? d- Determine the average cash balance

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