Please show the formulas, not just the answers. The formulas are what I really need. PLEASE post the formulas!!!!

Problem 3: You have been hired as a risk management consultant by a mid-market firm (i.e., a midsize firm - not super large, but not small either). They make disposable baby diapers and other disposable products for the newborn to toddler market. They are very proud of the fact, which they include in their advertising, that all their products are made in the United States and sold in the United States. They use American labor and employ inputs that are also produced in the United States. Presently, this company has 20% of the U.S. market for its product lines. Roughly 75% of the products sold by its competitors are made overseas, mostly in China. As an encouragement to carry its product lines, the firm borrows money in the U.S. at a floating rate of interest and lends it to its customers at a fixed rate of interest in amounts sufficient to cover their inventory purchases of the firm's products. A. Based on what you have heard, does this firm have any foreign exchange rate risk exposure? If so, explain how it can be so even if all inputs are purchased in the United States and all output is sold in the United States. Keep your answer to no more than 70 words. Does this company's strategy of cementing its business relationships with its customers by lending them sufficient funds to purchase the company's products expose the firm to any risks? Explain at least two of them in 70 words or less. B. Examine the worksheet labeled Problem 3. In that worksheet you will see the company's monthly P&L for the prior 100 months. C. Using the raw monthly P&L data, calculate the following (note: do not attempt to convert the P&L's to monthly percentage returns, just work with them in their raw form): The monthly mean P&L (b) The monthly standard deviation of the P&L The skewness of the P&L distribution The adjusted kurtosis of the distribution D. Generate a histogram of the monthly P&Ls using bins $1 million wide and ranging from -$5 million to +$ 15 million. Note: Check the box marked "Chart Output." E. Based on your results for Part C and your results for Part D, would you conclude that this firm's monthly P&L is approximately normally distributed? Discuss in 50 words or less. F. Using the monthly P&L series for this firm, calculate the firm's one-month 95% VaR using each of the two historical methods discussed in class. G. Why might historical VaR not be a good indicator of future VaR? Answer in 70 words or less. H. Assuming that P&L is normally distributed, determine the probability that next month's P&L will be $700,000 or worse? Month Rank Monthly P&L 1 3,006,366 2 4,860,716 3 1,533 4 5,128,040 5 7,521,813 6 6,421,959 7 2,505,191 8 8,425,414 9 -13,395 10 3,470,305 11 8,550,973 12 5,756,900 13 2,384,918 14 -1,575,487 15 4,364,711 16 4,110,553 17 592,202 18 5,302,915 19 12,080,426 20 4,558,320 21 8,835,720 22 2,118,938 23 1,011,549 24 5,772,978 25 3,283,472 26 3,505,645 27 1,851,073 28 4,077,656 29 6,720,517 30 5,282,986 31 5,472,577 32 12,010,870 33 9,692,306 34 9,653,816 34 9,653,816 35 596,801 36 11,261,095 37 7,851,170 38 11,621,642 39 1,970,206 40 2,554,096 41 1,243,250 42 -204,080 43 8,908,533 44 9,062,392 45 3,585,823 46 7,428,896 47 1,747,543 48 12,370,852 49 3,580,521 50 5,462,127 51 10,939,213 52 4,380,092 53 554,567 54 10,397,866 55 6,939,891 56 7,452,662 57 3,898,986) 58 6,386,838 59 6,471,988 60 8,640,111 61 5,008,277 62 2,795,023 63 6,654,544 64 2,978,340 6,178,219 66 4,792,562 67 4,302,007 68 11,336,205 69 6,239,813 70 4,025,581 71 1,111,294 72 8,280,201 73 975,399 74 976,014 75 4,120,528 76 2,615,581 77 -1,102,751 78 -3,341,580 79 1,066,199 80 3,569,856 81 9,732,002 82 1,883,713 83 3,817,624 84 -342,320 85 4,390,587 86 3,677,772 87 6,953,049 88 12,674,083 89 -271,423 90 5,113,727 91 7,017,890 92 421,982 93 -2,174,131 94 4,070,128 95 -39,016 96 1,836,787 97 11,064,026 98 4,056,380 99 3,525,412 100 5,452,873 65 Problem 3: You have been hired as a risk management consultant by a mid-market firm (i.e., a midsize firm - not super large, but not small either). They make disposable baby diapers and other disposable products for the newborn to toddler market. They are very proud of the fact, which they include in their advertising, that all their products are made in the United States and sold in the United States. They use American labor and employ inputs that are also produced in the United States. Presently, this company has 20% of the U.S. market for its product lines. Roughly 75% of the products sold by its competitors are made overseas, mostly in China. As an encouragement to carry its product lines, the firm borrows money in the U.S. at a floating rate of interest and lends it to its customers at a fixed rate of interest in amounts sufficient to cover their inventory purchases of the firm's products. A. Based on what you have heard, does this firm have any foreign exchange rate risk exposure? If so, explain how it can be so even if all inputs are purchased in the United States and all output is sold in the United States. Keep your answer to no more than 70 words. Does this company's strategy of cementing its business relationships with its customers by lending them sufficient funds to purchase the company's products expose the firm to any risks? Explain at least two of them in 70 words or less. B. Examine the worksheet labeled Problem 3. In that worksheet you will see the company's monthly P&L for the prior 100 months. C. Using the raw monthly P&L data, calculate the following (note: do not attempt to convert the P&L's to monthly percentage returns, just work with them in their raw form): The monthly mean P&L (b) The monthly standard deviation of the P&L The skewness of the P&L distribution The adjusted kurtosis of the distribution D. Generate a histogram of the monthly P&Ls using bins $1 million wide and ranging from -$5 million to +$ 15 million. Note: Check the box marked "Chart Output." E. Based on your results for Part C and your results for Part D, would you conclude that this firm's monthly P&L is approximately normally distributed? Discuss in 50 words or less. F. Using the monthly P&L series for this firm, calculate the firm's one-month 95% VaR using each of the two historical methods discussed in class. G. Why might historical VaR not be a good indicator of future VaR? Answer in 70 words or less. H. Assuming that P&L is normally distributed, determine the probability that next month's P&L will be $700,000 or worse? Month Rank Monthly P&L 1 3,006,366 2 4,860,716 3 1,533 4 5,128,040 5 7,521,813 6 6,421,959 7 2,505,191 8 8,425,414 9 -13,395 10 3,470,305 11 8,550,973 12 5,756,900 13 2,384,918 14 -1,575,487 15 4,364,711 16 4,110,553 17 592,202 18 5,302,915 19 12,080,426 20 4,558,320 21 8,835,720 22 2,118,938 23 1,011,549 24 5,772,978 25 3,283,472 26 3,505,645 27 1,851,073 28 4,077,656 29 6,720,517 30 5,282,986 31 5,472,577 32 12,010,870 33 9,692,306 34 9,653,816 34 9,653,816 35 596,801 36 11,261,095 37 7,851,170 38 11,621,642 39 1,970,206 40 2,554,096 41 1,243,250 42 -204,080 43 8,908,533 44 9,062,392 45 3,585,823 46 7,428,896 47 1,747,543 48 12,370,852 49 3,580,521 50 5,462,127 51 10,939,213 52 4,380,092 53 554,567 54 10,397,866 55 6,939,891 56 7,452,662 57 3,898,986) 58 6,386,838 59 6,471,988 60 8,640,111 61 5,008,277 62 2,795,023 63 6,654,544 64 2,978,340 6,178,219 66 4,792,562 67 4,302,007 68 11,336,205 69 6,239,813 70 4,025,581 71 1,111,294 72 8,280,201 73 975,399 74 976,014 75 4,120,528 76 2,615,581 77 -1,102,751 78 -3,341,580 79 1,066,199 80 3,569,856 81 9,732,002 82 1,883,713 83 3,817,624 84 -342,320 85 4,390,587 86 3,677,772 87 6,953,049 88 12,674,083 89 -271,423 90 5,113,727 91 7,017,890 92 421,982 93 -2,174,131 94 4,070,128 95 -39,016 96 1,836,787 97 11,064,026 98 4,056,380 99 3,525,412 100 5,452,873 65