1) You will be utilizing Black-Scholes option-pricing model to price the call option. Look up value of stock from your portfolio of today. Suppose that strike price will be 10% above today’s stock value and compute price of this option. Give the description which supports your findings.
2) Read the article The Design of a Cash Concentration System by Stone and Hill. Explain the main issues involved in structuring and execution of the efficient cash collection system. Describe some of the problems which can have the unpleasant effect on cash concentration system.
3) HMO desires your hospital services for its obstetrics division. It proposes to pay your hospital $2,000 for the vaginal delivery without complications (DRG 373). You look at Standard Test Procedure (STP) for this Diagnosis-Related Group (DRG) and find out that your cost of hospital is $2,400. Describe in detail that what will you do to get the contract?