You and two other people are to place bids for an object, with the high bid winning. If you win, you plan to sell the object immediately for 10,000. How much should you bid to maximize your expected profit if you believe that the bids of the others can be regarded as identical and uniformly distributed between 7,000 and 10,000? Note that it is known that the bids of others are independent.

7. Three bidders have a private valuation drawn from a uniform distribution on [0,30] for a single item. The valuations are 10, 15 and 20 for bidders 1, 2 and 3 respectively. a) What are the bidders' equilibrium strategies in a second price auction? b) Show that for bidder 2 no deviation from his strategy in a) would be profitable. c) Who wins the auction and how much do they pay? d) If instead the seller uses a first price sealed bid auction, what are the bidders' equilibrium strategies?

To acquire a 400,000 square foot industrial park in Boca Raton, Florida at a purchase price of $40 million, an investor put down 40% and borrowed $24 million with a 30-year fully amortizing fixed rate mortgage loan at an annual contract interest rate of 5% payable monthly. The borrower was charged two points by the lender that was deducted from the loan amount at closing. If the monthly payments on the loan were paid on time each month and if the loan was fully repaid at the end of 10 years with no prepayment penalty, what was the effective annual yield on the loan to the payoff date? a.5.28% b.5.38% c.5.18% d.5.08%

What was the correct interpretation of condition 4 in DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423? Choose one of the following. A plan containing the 9 lots being sold should have already been lodged for registration at the time of contract. The plan attached to the contract containing 35 lots could be registered in 2 stages, so long as the plan already lodged at the time of contract contained the 9 lots being sold. The plan attached to the contract containing 35 lots should have already been lodged for registration at the time of contract. The plan attached to the contract containing 35 lots could be lodged within 14 days of the contract being signed.

The bargaining zone, or zone of possible agreements (ZOPA), is the range _____. Group of answer choices of overlap between negotiators' reservation points below the seller's reservation point and above the buyer's target point between negotiators' target points above the seller's reservation point and above the buyer's target point

Be careful when the counterparty discloses their BATNA at the outset of the negotiation. When the counterparty discloses his or her BATNA at the outset of the negotiation, negotiators often respond with all of the following actions, except _____. Group of answer choices disclose more truthful information settle for less profit make less demanding offers make more extreme demands for money and time

Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is available, and Bud Strassel, the president and owner of Strassel Investors, believes if he purchases and develops this property, it can then be sold for $155,000. The current property owner has asked for bids and stated that the property will be sold for the highest bid in excess of $100,000. Two competitors will be submitting bids for the property. Strassel does not know what the competitors will bid, but he assumes for planning purposes that the amount bid by each competitor will be uniformly distributed between $100,000 and $145,000. (a) What is the estimate of the probability Strassel will be able to obtain the property using a bid of $125,000? (Use at least 5,000 trials. Round your answer three decimal places.) (b) How much does Strassel need to bid to be assured of obtaining the property? $125,000 $135,000 $145,000 (c) Use the simulation model to compute the profit for each trial of…

If Jensen obtains the job based on a bid of $14,300, what is the probability that he will lose money on the job?Note: Use Appendix B (link to appendix b https://cxp-cdn.cengage.info/protected/prod/assets/b6/2/b62d7c39-0b28-4359-ade6-4e056146f23e.pdf?__gda__=st=1671734492~exp=1672339292~acl=%2fprotected%2fprod%2fassets%2fb6%2f2%2fb62d7c39-0b28-4359-ade6-4e056146f23e.pdf*~hmac=6aa777d3df8bd33ffb3bbf0e849b197e2f0e6fb7a521cce4eb085aa7faf52b03) to identify the areas for the standard normal distribution. If required, round your answer to four decimal places.

Which of the following statement is true? O For any type of derivatives, the payoffs will never be negative For any type of derivatives, the profit will never be negative There is no derivative that offers non-negative payoffs There is no derivative that offers non-negative profit All of the statements above are wrong

Simon purchased both a call and a put on 280,000 bushels of lentils. Both options have a strike price of $5.00/bushel and a common expiration date. Lentils contracts are based on 5,000 bushels. The price of lentils on the expiration date is $5.38/bushel. A. Ignoring all costs, calculate Simon's total option payoff for these two contracts. B. Assuming that a call costs Simon $0.15 per bushel and a put costs $0.11 per bushel, calculate Simon's total profit or loss on the two positions.