Suppose you had inside information on Covid-19 and was bearish on the market and decided to sell one Dow Futures E-Mini contract when the futures price was where it is at point A = 29,000. The margin requirement is $5,390 and the multiplier is 5. If you close at point B your rate of return would be over 800% Answer T for true and F for false. Dow Mini Dec. 2020 30,000 A = 29,000 29,000 28,000 27,508 27,000 MW C = 26,000 26,000 25,000 24,000 wait to that 23,000 22,000 B = 21,000 21,000 20,000 19,000 18,000 Dec '19 Jan 20 Feb 20 Mar '20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct20 So you are chatting with a friend who is in econ 351. You are bragging about all the money you made with your short position on the market (from point A to B) and he/she suggests that you buy insurance to protect your gains...... that is, he/she suggests that you hedge your short position. Note that futures options, both calls and puts are available on this futures contract.

Suppose that we hedge our existing short position by buying one FO call at point B with a strike price of 21,000 for $5,000 ($5,000 is the price of the FO call). We now consider the move from point B to point C, where the futures price of the Dow Futures E-Mini goes from 21,000 (point B) to 26,000 (point C). We assume 26,000 is the futures price at expiration. Your total profit given your short bet and your hedge is . Please, no $ signs and no commas - so if the profit is $30,000 please type in 30000, not $30,000, not 30,000. Thanks and please take care here. Please use the graph below to answer the following questions. + ? D B 21,000 A Futures price @expiration 26,000 29,000 BE point

The breakeven point for the futures options call is . Please, no $ signs and no commas - so if the BE point is 23,000 please type in 23000, not 23,000. Thanks and please take care here. The profit associated with point B is Please, no $ signs and no commas so if the profit is $30,000 please type in 30000, not $30,000, not 30,000. Thanks and please take care here. The profit associated with point C is Please, no $ signs and no commas so if the profit is $30,000 please type in 30000, not $30,000, not 30,000. Thanks and please take care here. The profit associated with point D is Please, no $ signs and no commas so if the profit is $30,000 please type in 30000, not $30,000, not 30,000. Thanks and please take care here. When the Dow mini fell to 21,000, your friend from econ 351 told you to hedge by buying a futures option call with a strike price of 21,000. Another hedge would have been to write a futures option put with a strike price of 21,000. The premiums on either the call or put are $5,000 each. Consider the graphic below.

+ A Futures Price @ Expiration 21,000 E The futures price at expiration at point E is . Please, no $ signs and no commas so if the futures price at expiration is 23,000 please type in 23000, not 23,000. Thanks and please take care here.

\f(a) Explain the privity of contract rule. (b) What is vicarious performance and is vicarious performance an exception to the privity of contract rule? () Explain why an insurance contract is an exception to the privity of contract rule. 6. (a) Under what circumstances would "silence" be acceptance? vestion on a topwats page (b) Explain the term "counter-offer" and how it might arise. (e) Does a contract under seal require consideration? If not, why not?Question 5 a) Your supervisor made a statement that, 'It Is not compulsory to attend the staff meetings as long as you come to work. As a company law student, evaluate the statement to the staff who have stopped attending the staff meetings and the consequences. bj Maame Serwas has Just been appointed as a director of a limited liability company. She has approached you with confusion as she does not know what Is expected of her. Critically break down the subject on directors to her. c). Simba Co. Lid. has been operating for the past two years without holding any meetings. As the company law Intern, convince your supervisor on the need to rectify the errors. Question 5 a) Your supervisor made a statement that, "It is not compulsory to attend the staff meetings as long as you come to work. As a company law student, evaluate the statement to the staff who have stopped attending the staff meetings and the consequences. bj Maame Serwas has Just been appointed as a director of a limited liability company. She has approached you with confusion as she does not know what Is expected of her. Critically break down the subject on directors to her. c). Simba Co. Ltd. has been operating for the past two years without holding any meetings. As the company law Intern, convince your supervisor on the need to rectify the errors.1. Extending the Economic Model 245 is relatively hard. You already encountered this argument in favor of strict liability when we discussed consumer product injuries. We have given an information-cost argument for favoring a rule of strict vicarious liability for employers rather than a rule of negligent vicarious liability. Another argu- ment goes in the opposite direction. To illustrate, a sailor on a tanker might negligently discharge oil onto a public beach at night. Informing the authorities quickly about the accident will reduce the resulting harm and the cost of the cleanup. The captain of the ship might be the only person besides the sailor who knows that the harm occurred or who can prove that pollution came from its ship. Strict vicarious liability gives the cap- tain an incentive to remain silent in the hope of escaping detection. In contrast, a rule of negligent vicarious liability gives the captain an incentive to reveal the harm to the authorities immediately. As long as the captain can prove that he carefully monitored the sailor, the rule of negligent vicarious liability allows the captain to escape liability. As compared to a rule of strict vicarious liability, a rule of negligent vicarious liability encourages employers to report more wrongdoing by employees.?! QUESTION 7.5: What if an accident has occurred because an employee was performing a job for which he was not qualified after the employee had falsely told the employer that he was qualified? Should the employer still be liable for the victim's losses under respondeat superior