Assume that three business owners each own an identical storage building valued at 120,000$. Assume that there is a 1% chance in any year each building will be destroyed by a peril (fire), and that a loss to any of the buildings is an independent event. Assuming that:
• Fire events are independent of each other
• Each building faces same types of risks and environmental conditions. Given that, solve the following questions:
1. Use the compound probability of independent events law to find the sample space of the probability of each possible event
2. Find the annual expected loss for each of the insureds.
3. Find the risk of incurrence of losses (Std dev).

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Taking commercial paper means the holder acts honestly

Prepare beneish corporation's income statement and statement of stockholders' equity for year-end december 31, and its balance sheet as of december 31. there were no stock issuances or repurchases during the year. (do not use negative signs with your answers unless otherwise noted.)