...SECOND CITY OPTIONS: A Case Study on Index Options[1] Don M. Chance and Michael L. Hemler (Version: August 30, 2011) Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts. SCO trades for itself and a number of corporate and individual clients. In addition, it provides general advice to other clients who trade for themselves. SCO was founded in 1975, two years after the CBOE opened. It was very successful for its first 25 years, but its profits have declined steadily since 2000. SCO's founder and principal owner, Joseph Jensen, is 67 years old and has been a life-long student of the stock market. Jensen has traded since he was a teenager. By the age of 30 he was a millionaire and an acknowledged expert on analyzing market trends. Throughout his career Jensen has relied primarily on technical analysis, the evaluation of trends in past market data such as prices and volumes. He has consistently devised option strategies to take advantage of his stock market forecasts. Over the last several years, however, his techniques have grown less profitable. Jensen attributes his declining success...
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...The Socio-Economical and Environmental Revitalization of Waukegan, its Lakefront & Superfund Sites Waukegan is a Suburb of 8 miles south of the Wisconsin boarder and north of Chicago along the lakefront. Waukegan is the 9th largest city in Illinois with a population of 88,826 people. It is the 5th largest city along Lake Michigan’s west shoreline. Waukegan has been known as the “rustbelt” of Lake Michigan. This is due to its history of industry. Through the involvement of Local & Federal Agencies, Companies and the Community Waukegan has made strides in the last 30 years to clean up 3 Superfund Sites, setting a stage for the city to Revitalize and become the “French Rivera of the Midwest” like Mayor Robert Sabonjian had envisioned in 1986. In 2003 the city of Waukegan created a Master Plan and from that a general implementation of their Master Plan. This includes strengthen the existing Downtown by activating storefronts on Genesee Street to support and respond to the re-opening of the Genesee Theatre and create a parking structure to support the Genesee Theatre (completed). The Harbor front transformation will begin with the reconfiguration of the Amstutz Expressway and rail lines and yards. They will also work to unlock the Lakefront for public use and future private investment. Next they will work to create new opportunities in Downtown and the South Lakefront by redeveloping three Sheridan Road sites in downtown for a variety of uses ranging from housing to office...
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...Case Study: Transmission Media This case study of the fictitious company, Superior Views Industrial, was created to illustrate what a network professional may need to consider improving connectivity among geographically dispersed locations. The home office of the company is in Portland, and branch offices are located in Pittsburgh, Princeton, Nashville, and New Orleans. Superior Views Industrial is typical of any company that may have grown through merger or acquisition and needs to improve a system of connectivity that may be outdated or non-optimal. The current system has a number of older 4800 and 9600 Kbps modems. If the company continues to grow, a properly designed system will allow new sites to be added to the network without affecting the operations of the other sites. According to Connolly and Begg (1999), companies with a well-planned distributed environment are better able to handle expansion. It is therefore important that the network and information technology professionals at Superior Views Industrial ensure a sound connectivity infrastructure. Although there are various costs that must be incurred in any networked system (e.g., maintenance, equipment costs, operating personnel), the most important recurring cost that management must consider is the cost of the actual transmission service. Transmission costs increase with distance (Carne, 1999). Therefore, due to the high cost of voice and data communication facilities and services, multiplexing has become...
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...1994, the City of Denver notified BAE of a $12,000/ day penalty for not finishing the baggage handling system by the original completion date, which was October 29, 1993. The City of Denver also demanded BAE pay for the $50 million conventional tug-and-card baggage system. The delays were due to many reasons. When BAE started the project, they were faced with fully defined project scopes, which proved to be a major planning error. There were many project management issues. The communication channel was not managed well between the stakeholders. As well, the City of Denver regulations had its fair share in delaying the project. The political and economic situations played a role in the problem. The political involvement in the DIA project started since day one. There was too much pressure to fast track this project due to mayoral races. In the mid-1980s, there was a free fall in the economy. Officials in the region looked at the DIA project as a mean to increase the economic activity in the region. BAE has few options on dealing with this problem. The first option is to maintain the status quo. The second option is to cancel the project, and the third option is to continue with same project upon completing some restructurings. After analyzing the case and the options that are available, it is recommended that BAE proceed with option three, which is to proceed with same contract but after agreeing on some modifications and restructurings. Proceeding with this option would save...
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...I Key Problem— The imbalanced economic development in different provinces and cities of China resulted in differences between airports. There were three types of airports— A) Hub airport—to be a hub airport one had to provide efficient, convenient and low cost services to attract airlines to choose it as their route destination and travelers to choose it as a transit port. To become a hub, airports needed to meet two basic conditions: excellent position and huge air transport market and transit demands. B) Trunk airport—Trunk airports were those in provincial capitals, capital cities of the autonomous regions and economically developed cities. The role of the trunk airports was to transport local travelers and travelers from adjacent regional airports to other trunk airports. C) Regional airports—Regional airports were also known as local airports. They were small and built in remote areas. The main role of regional airports was the transportation of local passengers. Feng Wang was the general manager of market development for the Dalian Airport –his primary goal was to establish the Dalian Airport as a major regional hub in the Northeast and Bohai Rim of China—second only to Beijing International airport. In 2002, China’s civil aviation industry restructured and handed over 90 airports across the country to local governments, removing the protection of the central government. From this point onwards Dalian Airport had to compete with other airports as well as rail...
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...CONTENT PAGE Chapter 1. BACKGROUND The Case Summary 3 Methodology 3 Limitations 4 Chapter 2. ANALYSIS OF CASE 2.1. Setting up the model 5 2.2. Solution from Management Scientist 6 Interpretation and Explanation of Solution 6 Range of Optimality 6 Range of Feasibility 7 Shadow Price 8 Reduce Cost 8 Chapter 3. ANALYSIS OF ALTERNATIVES 3.1. Option 1: Purchasing only one type of truck 9 3.2. Option 2: Purchasing the same number of pickup trucks as moving vans 10 3.3. Option 3: Purchasing the minimum total number of trucks 11 Chapter 4. RECOMMENDATION AND CONCLUSION 4.1. Recommendation 12 4.2. Conclusion 12 REFERENCE 13 BACKGROUND The Case Summary Moving company Bay City Movers submit to its investors, a business plan for investing to the company to make total trucking capacity at least 36 tons. Company is at the stage to replace its entire fleet. The fleet consists of 1 ton pickup and 2.5 ton van type trucks, which are manned by 1 and 4 workers respectively. The cost of pickup truck is $24,000 and the cost of van is $60,000. Bay City Movers employs 48 workers and has facilities for 40 trucks in total. Company does not want to increase number of employees and trcking facilities but wishes to make minimum investment to get al least 36 tons of trucking capacity. The following Table 1 summarizes the above mentioned limitations of existing resources of...
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...Elizabeth Kiem Resilient Cities What makes a city resilient? When the word resilience comes to mind I think of ones ability to bounce back. In the case of matching resilient up with a city I wasn’t quite sure what exactly goes into a city being qualified to earn that adjective. After navigating around the Building Resilient Regions Website and viewing what they do and how they do it, I found myself looking at their resilience capacity index. This index ranks over 300 U.S. cities on how it recovers from stress. Ultimately a cities stress is a mixture of how well it can handle natural disasters, economic decline, and rapid growth. It can be summarized as a cities ability to adapt and transform. When looking at the index the top ranked cities was not what I expected. I decided to see just how resilient one of my favorite cities to go to is; Seattle, Washington. I picked Seattle because I love to visit there. Being from Arizona I love the change of scenery. Cool, rainy, and gray is a nice getaway from scorching and dry. I also have family there so it’s a city close to my heart. I have never thought about its resiliency so after I learn more the next time I go there I can see first hand what needs to be done or what it already doing. Seattle is the largest city in Washington and located between Lake Washington and an inlet of the Pacific Ocean called the Puget Sound. Seattle’s population is over 600,000 people. Seattle is hilly and has wet winters and dry summers. In regards...
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...WW2. We are told by Susan that her family’s almost commonplace visits to Central Park Zoo and Central Park. Susan’s father started writing and because of the big success he had and the fact that they as parents wanted one more child, the family moved to the one of the suburbs of New York City. Susan was not very enamored of it, she loved to be in the enormous city, to skate on the ice rink and to visit the yak in Central Park Zoo. After they had moved, she eventually moved back the New York City and became an adult who raised her own kids, in the way that she wanted to be raised. In this analysis, we will focus on the writer’s use of contrast. We will also analyze the central- themes, which are explored in the text, and we will in the end put some comments on the title of the essay. In this paragraph, we will comment on the title. “My Little Bit of Country” was the title of the essay. The title was inspired by Andy Warhol, who Susan heard saying, that it was better to live in the city than in the country. On page 3, line 141-144, Susan wrote: “It was better to live in the city than the country because in the city he could find a bit of country, but in the country there was no little bit of city”. Susan strongly agree with Andy Warhol and she considered Central Park as her little bit of country, Central Park was where she...
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...Scenery 3. Atmosphere B. Newsoms 1. Variety of structures 2. Scenery 3. Atmosphere C. Conclusion sentence. II. The second comparison is the people A. Hampton 1. Occupations, recreation and leisure 2. General characteristics B. Newsoms 1. Occupations, recreation and leisure 2. General characteristics C. 1. Conclusion sentence. III. The final comparison is the cost of living A. Hampton B. Newsoms C. Conclusion sentence. EVANS 1 Living in Hampton, VA. Differs from Living in Newsoms, VA. in environment, People, and Cost of Living. There is a wide variety of housing options in the Hampton Roads area, which consists of seven major cities, numerous rural towns and several waterfront communities. Living in a big city is very different from living in a small country town. The three areas of major differences:...
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...SECOND CITY OPTIONS: A Case Study on Index Options[1] Don M. Chance and Michael L. Hemler (Version: August 30, 2011) Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts. SCO trades for itself and a number of corporate and individual clients. In addition, it provides general advice to other clients who trade for themselves. SCO was founded in 1975, two years after the CBOE opened. It was very successful for its first 25 years, but its profits have declined steadily since 2000. SCO's founder and principal owner, Joseph Jensen, is 67 years old and has been a life-long student of the stock market. Jensen has traded since he was a teenager. By the age of 30 he was a millionaire and an acknowledged expert on analyzing market trends. Throughout his career Jensen has relied primarily on technical analysis, the evaluation of trends in past market data such as prices and volumes. He has consistently devised option strategies to take advantage of his stock market forecasts. Over the last several years, however, his techniques have grown less profitable. Jensen attributes his declining success to the growing...
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...1. What is the best way to increase value the most, given the following information for one customer? Base Case: Perceived benefits $50 and Price $10.00 Improvement Option A: Perceived benefits $65 and Price $13.00 Improvement Option B: Perceived benefits $65 and Price $12.50 Improvement Option C: Perceived benefits $60 and Price $12.50 We derive the following (using the formula, value = perceived benefits / price (cost) to the customer): * Base Case: value = (50/10) = 5 * Option A: value = (65/13) = 5 * Option B: value = (65/12.50) = 5.20 * Option C: value = (60/12.50) = 4.80 The option B is the best way to increase value the most (but the cost to the customer is higher, and the perceived benefit as well). 6. Marine International manufactures an aquarium pump and is trying to decide whether to produce the filter system in-house or sign an outsourcing contract with Bayfront Manufacturing to make the filter system. Marine’s expertise is producing the pumps itself, but it is considering producing the filter systems also. To establish a filter system production area at Marine International, the fixed costs is $370,000 per year, and it estimates the variable cost of production in-house at $11.27 per filter system. If Marine outsources the production of the filter system to Bayfront, Bayfront will charge Marine $25 per filter system. Should Marine International outsource the production of the filter system to Bayfront if marine sells 25,000 pumps a...
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...**U**rban housing, also known as slums or favelas, is one of the major challenges faced by Brazil. The slums are social clusters officially known as informal settlements. Those communities have been a big problem, not only in Brazil but all around the world. They are growing at an alarming rate in the big cities due to urbanisation. In global surveys for the most expensive cities for residential properties, the 2 main Brazilian cities are highly ranked, with São Paulo in 10th position and Rio de Janeiro 2 ranks under. The 2 main reasons are the natural growth of the city population with birthrate exceeding deathrate, and the inflow of unemployed people, along with their families, looking for a job. Thus leading to a shortage...
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...Munich Airport or Franz Josef Strauß Airport (MUC) is the second busiest airport in Germany located 35 kilometers away from the Munich city center. It is the primary airport of the national air carrier Lufthansa and its Star Alliance partner airlines. Arriving and Departing in MUC Public Transit from MUC From Munich Airport is easy to get to the city center. The airport is connected to the center by two lines of the S-Bahn - S1 and S8. Both lines go via the central station of the city München Hauptbahnhof, which is located close to Marienplatz and Karlsplatz. The final stop of S1 is Ostbahnhof and Geltendorf is the final stop of S8. From Hauptbahnhof, passengers can transfer to lines 1, 2, 4, and 5 of the city metro U-Bahn. S-Bahn trains from MUC depart every 20 minutes, so passengers do not have to wait long. If the final destination is located in Munich city center, there is almost no difference what line S1 or S8 to take. In any case, they go via the central station. The...
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...MYSQL WORKBOOK INTRODUCTION MySQL is (as of March 2014) the world's second most widely used open-source relational database management system (RDBMS). It is named after co-founder Michael Widenius's daughter, My. The SQL phrase stands for Structured Query Language. The MySQL development project has made its source code available under the terms of the GNU General Public License, as well as under a variety of proprietary agreements. MySQL was owned and sponsored by a single for-profit firm, the Swedish company MySQL AB, now owned by Oracle Corporation. MySQL is a popular choice of database for use in web applications, and is a central component of the widely used LAMP open source web application software stack (and other 'AMP' stacks). LAMP is an acronym for "Linux, Apache, MySQL, Perl/PHP/Python." Free-software-open source projects that require a full-featured database management system often use MySQL. For proprietary use, several paid editions are available, and offer additional functionality. Applications which use MySQL databases include: TYPO3, MODx, Joomla, WordPress, phpBB, MyBB, Drupal and other software. MySQL is also used in many high-profile, large-scale websites, including Google (though not for searches), Facebook, Twitter, Flickr and YouTube. GETTING MYSQL My sql could be gotten using the following websites and installed as part of a web server. [pic] Fig 1.1 Installing wamp server from http://www.wampserver.com/en/ [pic] Fig...
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...contemplating renovations, in hopes of adding capacity and increasing revenue. There are several scenarios that are available to him. One option is to add an extra food bar. The second option is to move the location of the cooking area. He can also implement both options, if he so chooses. Our team has done the appropriate financial calculations, as well as qualitative considerations. Our decision is that Mr. Butkus should choose to implement both options. The additional capacity is definitely needed, and the demand to fill the capacity is also present. We calculated the possible revenue that could be earned under two sections: Low additional demand and High additional Demand. The additional revenue generated in these two scenarios are $42 900 and $31 200, respectively. Also, the in both of these scenarios, the time needed to pay for the cost of the required expansions are less than a year. We have looked at a number of possibilities, both positive and negative, and we feel that this is the best option. There really is no justification to not go through with the changes. They will result in a greater profit, both in the short and long run. Our analysis is included in the following document. Problem Statement John Butkus, owner of the Mongolian Grill restaurant in London Ontario, had to finalize his major design decision for his second restaurant in Waterloo, Ontario that would optimize the restaurant’s profitability and compromising the dining experience of his customers...
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