Message-ID: <19116788.1075843092143.JavaMail.evans@thyme> Date: Sat, 6 May 2000 05:51:00 -0700 (PDT) From: jeff.dasovich@enron.com To: pbukowski@acex.com Subject: Team Project #2---Problem #2 Cc: cvavrek@dttus.com, dennis.sidbury@prudential.com, shawne@harmony.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: cvavrek@dttus.com, dennis.sidbury@prudential.com, shawne@harmony.com X-From: Jeff Dasovich X-To: pbukowski@acex.com X-cc: Carolyn Vavrek @ENRON, Dennis Sidbury @ENRON, Shawne Robinson @ENRON X-bcc: X-Folder: \Jeff_Dasovich_Dec2000\Notes Folders\Mba--quant X-Origin: DASOVICH-J X-FileName: jdasovic.nsf I think Dennis, Shawne and I were supposed to work more on #2, but since I can't recall, I'm sending to all. First, I apologize. I tried to work directly with the excellent spreadsheet Carolyn put together, but I kept fumbling, butchering, etc. So I canibalized her great stuff and created a new spreadsheet, attempting to incorporate the "clarifications" (yeah, right) that Prof McCullough distributed via email, and the stuff we talked about during break (i.e., timing of cash flows). The answers are at the bottom of the work sheet. And I've also included the report (though I did not peruse it for errors, relevancy, etc.). My biggest concern is question 6. My answer (despite some outliers) sez that there ain't no loan in June. (This may mean my spreadsheet's got a fatal flaw--significant probability.) Finally, doing a series of 1,000 trials resulted in some considerable variability across runs--again, could be due to screw up on my part--so the answers I generatd comes from a run of 5,000 trials. (If you run the sheet, beware, 5,000 takes some time, unless you've got DSL or something.) Let me know if this is completely out to lunch, or if you're coming up with something remotely similar. Best, Jeff