Individual assignment

This assignment is to be done individually. This means that you are required to answer the questions in the assignment on your own. The purpose of the assignment is to help you become more familiar with pricing options, using a specifically designed piece of software. The pricing of options is a very technical area, and most of us do not have the technical expertise to price options from first principals. Therefore in your working lives, if you do need to price options, then it will most likely be done for you via software.The software we will be using is called ‘Derivable', which has been specifically developed for the Hull et al (2014) textbook. You can download the software from the Model unit site under the ‘Additional Resources' section. Software Installation Installation instructions for the Derivable software are quite straight forward. Please follow these simple steps. Step 1 . Go to the BIFF 5 Model site, under ‘Additional Resources' Section, click on the D erivable software and download the file ‘Derivable. Zip'. Step 2. Double-click on the Derivable. IP file to bring up the Winzip utility program. Step 3. In the Winzip utility program, on the ‘Home' tab, there should be a button labeled ‘I-click Unzip'. Press on the ‘I-click Unzip' button. The compressed files directories and folders should then be extract. Once Winzip has completed the extraction, then close the Winzip program. Step 4. There should now be a folder in your directory named ‘Derivable'. Drill down through the Derivable folder until you come to the list of files; The only file you need to be concerned with for the Assignment is ‘JUDGE . XSL'. Step 5.Double-click on file ‘JUDGE . XSL'. This should bring up your Excel application aerogram with the JUDGE . XSL spreadsheet. If you look in the ‘readmes. Txt' file that is located in the same directory as the JUDGE . XSL file, it will tell you the versions of the Excel program th at Derivable will work with. If you are not using any of these versions of Excel then you will need to get access to one of them in order to do the assignment. Step 6. Once you have opened the ‘JUDGE . XSL' program in Excel, that final step you need to perform is to ensure that Excel has ‘Enabled Macros'.This will allow the Excel program to use the Visual Basic for Applications (ABA) code on which Derivable is eased. If you are using Excel 2010, the enable macros should appear as a ‘strip' across the top of your spreadsheet when you first enter the JUDGE . XSL program. You just need to press the enable button. If you a later version of Excel you will need to go to the macro security settings and enable the macros. Once you have enabled the macros, Derivable will be available for use. Step 7: Click on the Excel spreadsheet tab ‘Equity_FIX_landed_Futures_Options'.This is the only spreadsheet you will need to complete the assignment. Format of Assignment and sub mission requirements: The assignment consists of seven questions. You should attempt all questions. Responses to the questions should be presented according to the Q Manual. The Q Manual provides guidelines on the presentation of submitted materials. Submission of the assignment will require both an electronic submission AND a hard copy submission: The submission of an electronic copy can be done via Model (further technical details will be provided prior to the submission date. The submission of a physical hard copy will be done via a designated assignment box located in the 3rd Floor Foyer of Building H. Further details to be provided closer to the submission date. ) ASSIGNMENT QUESTIONS Please note: Most, but not all of the material needed to answer these questions will be covered in lectures. You are postgraduate students so it is expected that you will be able to seek out the material necessary to complete the questions using your own initiative. All information is available wi thin the textbook, even though it may not all be covered in lectures.IQ . Use Derivable to calculate the value of an American put option on a non- dividend-paying stock when the stock price is USED 30, the strike price is USED 32, the sis-free rate is 5%, the volatility is 30% and the time to maturity is 1. 5 years. (Choose ‘Binomial American' for the option type and 50 time steps. ) (See Chapter 9 for supporting theory and materials) a) What is the option's intrinsic value? B) What is the option's time value? C) What would a time value of zero indicate? What is the value of an option with zero time value? ) Using a trial and error approach, calculate how low the stock price would have to be for the time value of the option to be zero. (use 50 and 500 time steps) Q. Consider an option on a stock when the stock price is $41, the strike price is $40, he risk-free rate is 6%, the volatility is 35% and the time to maturity is one year. Assume that a dividend of $0. 50 is expected after six months. (See Chapter 10 for a) Use Derivable to value the option assuming it is a European call. B) Use Derivable to value the option assuming it is a European put. ) Verify that put-call parity holds. D) Explore, using Derivable, what happens to the price of the options as the time to maturity becomes very large. For this purpose, assume there are no dividends. Explain the results you get. Q. Suppose that the price of a non-dividend-paying stock is $32, its volatility is 30% ND the risk-free rate for all maturities is 5% per annum. Use Derivable to calculate the cost of setting up the following positions. In each case provide a table showing the relationship between profit and final stock price. Ignore the impact of discounting.Each table should have two columns, ‘Stock Price Range' and ‘Profit' (See Chapter 11 for supporting theory and materials) a) a bull spread using European call options with strike prices of $25 and $30 and a maturity of six months b) a b ear spread using European put options with strike prices of $25 and $30 and a ) a butterfly spread using European call options with strike prices of $25, $30 and $35 and a maturity of one year d) a butterfly spread using European put options with strike prices of $25, $30 and e) a straddle using options with a strike price of $30 and a six-month maturity f) a strangle using options with strike prices of $25 and $35 and a six-month maturity. Q. Consider a European call option on a non-dividend-paying stock where the stock price is ADD 40, the strike price is ADD 40, the risk-free rate is 4% per annum, the volatility is 30% per annum and the time to maturity is six months. See Chapter 12 for supporting theory and materials) a) Calculate , and for a two-step tree b) Value the option using a two-step tree. C) Verify that Derivable gives the same answer. D) Use Derivable to value the option with 5, 50, 100 and 500 time steps. Q.Consider an American call option when the stock price is $18 , the exercise price is $20, the time to maturity is six months, the volatility is 30% per annum and the risk- free interest rate is 10% per annum. Two equal dividends of 40 cents are expected during the life of the option, with ex-dividend dates at the end of two months and five months. Individual Assignment As stated earlier IM has been a significant tool in trading and commerce since the beginning of time. However what sets an organization apart is its ability to hangs data into information as efficiently and cost effectively as possible. Before we tackle this issue, defining data and information is important for the sake of understanding the context they will be used. Data is defined by O'Brien (2003) as raw material resources that are processed into finished information products. Information is data that has been converted into meaningful and useful context for specific end users (O'Brien, 2003).Hence, it is safe to say that data becomes information when value is added to it either through organizing, analysis and evaluation and placed in the correct context or the end user. If this statement is true then we can deduce that the better the organization is at completing the above process, then the more effective it is, and if it can streamline this process enough to provide the end use r with a service or product that they are willing to pay for, it will have increased its competitiveness (Gabon, 2008).For instance, a car manufacturer that assembles luxury cars wants to increase the effectiveness of their organizational system. They would start by looking at each component of the organization highlighting areas in which they can improve on quality, control and cost. In manufacturing they might want to introduce an Operating Support System (ASS) which is specific about the requirements at the plant to complete assembly of a car. The data inputted into the system requires that the inputted be specific about supplies, number of hours worked, number of people required to work on a particular car or day etc.The system will process and store the data for the next user, in a form that they will understand. Here the organization may look at the improvement of its networking system as access of the information is made easier and faster with the use of the intranet (O'Brien , 2003). Other elements that will add value to this process, thereby giving context to the next user is the compilation of relatable data such as energy usage, space required, reputable suppliers, financing and human resources.These might be inputted by other systems within the organization such as the Supply Chain Management Systems (SCM), with the use of the extranet (O'Brien, 2003). The data is then stored in the relevant database until it is required by the next user. A combination of the data can be transformed into information that is used in marketing of the cars manufactured, or can be used in the ordering and distribution of sources such as parts (doors, seats, trees) and land allocation or money for infrastructure development.This process of transformation can also be used as a control measure, when targets of the different organizational components are reviewed, or the quality or accuracy of the initial data may require verification and correction. Once the data has been transformed the information/ product can then be disseminated to the end user, in this example the car is sold to the customer. A Customer Relationship Management System (CRAMS) can collect data for feedback purposes or for customization of the car, depending on when the data is used.In essence a cycle is created and smooth flow of information from one component to the next increases the effectiveness and the competitiveness. These processes and systems aid in reduction in time wastage, an expensive commodity, where traditionally the organization might have had to compile the data physically, taken days to analyses it to find trends and pass it on to the different departments or components. In the process things might be delayed or incorrect, compilation could also involve travel costs in cases of the manufacturer having more than one assembly plant.The information from appliers would require making multiple phone calls for quotations or back and forts as prices are negotiated. All these are examples of costs that would be transferred to the customer. Quality of the information could be compromised depending on the control of data collection and transformation, leading to substandard parts being used resulting in a hazardous product that might not meet specifications, hence resulting in the product being described as a right-off or loss.The wrong customer information could lead to the wrong car being delivered to the wrong person, which could lead to customer dissatisfaction and inconveniences. Or storage of the information could lead to losses in customers, suppliers and credibility in the industry. As the organization implements the use of IS for information management it starts to optimize all its processes, thereby meeting Porters analysis of the value chain (Gabon, 2008) where streamlining input, processing and output leads to larger profit margins. Whilst at the same time satisfying Shih's measure of organizational effectiveness.In conclusion, if an orga nization successfully integrates the use of information systems as a means of information management, the benefits are multiple and extensive if done correctly. Obviously, if the organization introduces information systems but does not train staff on how to use it, or does not implement control measures in the input of the data the information gathered will not only be inaccurate but will lead to misinformation leading to lack of optimization, therefore reducing effectiveness and competitiveness(Gigs).Hence, the organization has to be fully committed to the implementation of the information systems as a means of improving its methods of information management, otherwise it will fall short. Interaction between the different components of the organization (through intranet), as ell as with outside entities, such as suppliers (extranet) and customers/ end users (internet) needs to be as smooth as possible. Of course, there will be instances of downtime, however how these are dealt with also improves the overall effectiveness of the organization and can translate into an increase in competitiveness.References 1) O'Brien, J. A. (2003) Introduction to Information Systems: Essentials of the E- business Enterprise. 1 lath Edition. International edition: McGraw-Hill Irwin. Boston 2) Gigs, W. (†¦ ) Demand median effectiveness versus organizational efficiency. Http://smelliness's. Churn. Com/organizatioorganizational Effectiveness Vs.. Organizational Efficiency 3) Gabon, M. (2008) Measuring company level competitiveness in Porter's Diamond model framework. HTTPS://ideas. Repel. Org/h/peak/suffer/149-1 58. HTML b) Discuss various e-business strategies that can be implemented for competitive advantage. (25) Over the years due to stiffer competition, growing global markets and a rise in more tech savvy consumers, the e- business has had to restructure the way they conduct business. With more and more people having access to the internet, it has become advantageous for e-businesses to conduct business online, hence, the growth in numbers of -businesses. E-business has been described as conducting business via the internet.It is not limited to just buying and selling but also the servicing of customers and the collaboration with suppliers (O'Brien, 2003). The demand for instant or efficient services, which are also affordable and custom-made, in some instances, has driven e-businesses to implement strategies that counter forces such as competition, customer bargaining supplier bargaining, threat of substitutes and the threat of new entrants (O'Brien, 2003). It is through the implementation of effective strategies to curb or reduce these actors that the e-business can increase its competitive advantage.This assignment will debate various e-business strategies and will highlight how their implementation leads to competitive advantage. Before we look at the strategies that can be implemented and how, it is important to clarify what a strategy is. Stra tegy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage (Belabored et al, 2011 Therefore e-business strategy would then be strategy as it applies to the e-business model.Another term that needs unpacking is competitive advantage as this will illuminate to what end the strategy is adopted. When the e-business implements a strategy that competitors are unable to duplicate or find too costly to imitate then it is said to have a competitive advantage (Belabored et al, 201 1). Hence, we can deduce that when online businesses adopt systems that streamline and enhance their operations and knowledge base with the result of creating a seen. ‘ice or product that is unique, in some way, gives that business an advantage.An effective way of e-business strategy implementation is through the adoption f a more strategic information management, in other words, information systems that allow the provision of a ser vice or product that industry competitors cannot provide. When it comes to implementation of the strategic information management system in e-businesses, there are several points within the value chain where the strategy can be adopted so as to improve the end product/ seen,'ice namely at Customer Relationship Management (CRM), Supply Chain Management (SCM), Enterprise Resource Management (ERM) (O'Brien, 2003).Therefore, the focus is on the strategic adoption of cost leadership, alliances, innovations and differentiation of the ND product or service (O'Brien, 2003) using information management systems. It is important to note that e-businesses are likely to use a combination of the strategies to gain competitive advantage; however, the examples below will try and place their implementation in isolation, in an attempt to illustrate how they work to increase competitive advantage.E- businesses are using strategic information systems at different organizational levels to improve the ma rgins in their value chain (O'Brien, 2003) as this enables them to deal with the ever changing markets, keeping them relevant ND competitive. For instance, Symbolizing, a locally based e-business that facilitates the purchase of groceries online and offers delivery to your doorstep, or nearest postal outlet in remote areas, has adopted an alliance strategy that enables the organization to service a niche market.The cost of delivering the groceries themselves would have been too high and would have resulted in an increase in the cost of service for the customer. However, through the strategic alliance with Compost, Symbolizing is able to offer the service to a wider range of clients as they can promise to deliver to almost nowhere countrywide as long as there is a post office. Through this alliance Zoning is able to continue doing business at a sign efficiently lower price, whilst at the same time offering a unique service to the Diaspora market that competitors are unable to duplica te.Another strategy an e-business could adopt to improve its strategic information system through innovation is by introducing a support system that plugs into the Customer Relationship Management system already in place. For example, if an e-business that offers security and tracking services for vehicles, also introduces a call centre agility, which the customer can access through the navigation system in the vehicle to ask for clearer navigation instructions or other services such as remote unlocking of the vehicle in the event that the owner has locked the keys in the car.This would give the business a competitive advantage as they have created a service that adds value to an existing one but is unique to them alone. In the same example if the navigation system or tracking system could inform the customer that it requires an update and when the customer makes a payment the system updates using hotshot access. The convenience f this ensures that the customer is locked-in, and wil l not look elsewhere for the same services.Strategic flexibility, which is capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment (Belabored et alarm 2011), improves e-business agility, which is its ability to post above average returns in an ever changing dynamic environment, due to quick responses to changes in the environment (O'Brien, 2003), as shown by an e-business that ensures that continued research, learning and training improves its service offering such as hospital in India hat specializes in the performance Of hip and knee replacements and diagnoses and recruits their patients online through a series of consultations, which are free, resulted in their opening up their client base to include people from all over the world.They have a support system that follows up on patient care which assists in referrals, as patients share their experiences with others with similar ailments. The hospital no longer wa its to patients to come to India, it has brought Indian state of the art healthcare to the global market online. Omen Inc. As illustrated by Cyprian (2003) adopted the growth strategy wrought the introduction of an online design room, which both designers and customers use to design, order and purchase customized faucets. The information system integrated the CRM and the SCM systems to produce a new product offering. They not only expanded their customer and supplier base they expanded their product lines. Individual Assignment Also, we had reviewed the different data flow that would function and Improve the proper handling between Ordain and their plants, and which would ensure the best relationship between each department. It would Improve the communication In Ordain Manufacturing and, thus. Save time and money after it is finally implemented. Security Controls Security and secure ways of doing business should always be an most level of concern in any project.Security Is primarily handled and managed by the operations group, which is the same staff that is responsible for operating in installing security intros and functions such as, Intrusion Protection Systems, Intrusion Detection Systems, firewalls, and recovery and routine backup operations. Yet, this system developers also share responsibility when it comes to security, especially when it's inside the IT and information systems. The application architecture should be run on Linux/Null-based server or Windows 7 Server Edition.Any additional software o r programs that would later be needed could be programmed in-house as a development project. Interfaces: â€Å"Interface design is the process of defining how the system will interact with external entities, e. G. Customers, suppliers, other systems† (Dennis, Wisdom, ; Roth, 2009). System interfaces require a high level of security because they are well capable of exchanging different information with other information systems. Password requirements can achieve a high level of security by themselves, and are considered secure methods to manage employee files, private and confident documents, or company tax records.Password requirements also help prevent internal security threats, like employees trying to access another employee's computer. Network: one recommendation this consultant has is incorporating a database that is accompanied and would be accessible only via a PLAN (Virtual Local Area Network). This allows a trusted employee to update, view, and modify if necessary so me basic level information that would be subject to confirmation bias supervisor or other payroll clerk.Access such as this would definitely require the use of a password and surname for security methods. Also, methods of security that would be of a most level would be the three factor authentication method, which would be: surname with password and also a fingerprint scan. Also, the third-party organizations that handle Radian's employee's benefits, like their workers compensation and health infinite, should be audited every year for the purpose of com edited this and accuracy, and this would also ensure the most correct processes within Ordain.Physical Data Flow Diagrams Implementation designs and decisions describe how an information system will work, and one has to know this before designing application logic of the information system. The physical data flow diagrams of this information would show all the details including, but not limited to, the data stores that refer to the d atabase tables and the files, the human actions or programs that perform the processes, as well as he physical transfer media for those data flows. If one maintains a proper in clear implementation, it will always provide the services that you will expect with complete and accurate results.Ordain wants to resolve the additional issues regarding the implementation and processes of the final changes, as soon as possible. There will be a meeting next week to discuss this very issue, and this author will work as hard as possible to ensure that all this companies needs will be satisfied and met, and in secure and safe manner as well. Conclusion It has been shown, by the data flow diagrams as well as the basis of this report, that whatever issues had plagued the Human Resources Department, it can be fixed References Systems Analysis and Design, 4th Edition. Individual Assignment Individual Assignment Topic: Apply your understandings of financial statements, working capital management, financial planning to identify, analyze, and propose solutions to the problems presented in â€Å"Clarkson Lumber Company† case. Requirements: * Answer all the guideline questions. Support your answer with necessary calculations, forecasts, analysis†¦ * Summarize the problems and propose solutions for â€Å"Clarkson Lumber Company† based on your answers and analysis of the guideline questions.Assessments: * This is an individual assignment. Although you are encouraged to discuss the case with your lecturer and fellow students, you are required to write the report on your own. Any evidence of plagiarisms will result in a disqualification. * Your total score is 100 pts (answers to the guideline questions 60 pts, summary of the problems 10 pts, and proposed solution 30 pts) * Format: use Arial 11; 1. 15 line spacing. * Deadline: March 31st, 2013Guideline questio ns: 1. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? (5 pts) 2. How has Mr. Clarkson met the financing needs of the company during the period 1993 through 1995? Has the financial strength of Clarkson Lumber improved or deteriorated? (15 pts) 3. How attractive is it to take the trade discounts? (10 pts) 4. Do you agree with Mr. Clarkson’s estimate of the company’s loan requirements?How much will he need to finance the expected expansion in sales to $5. 5 million in 1996 and to take all trade discounts? (15 pts) 5. As Mr. Clarkson’s financial adviser, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Clarkson’s loan request, and if so, what conditions would you put on the loan? (15 pts) Individual Assignment Also, we had reviewed the different data flow that would function and Improve the proper handling between Ordain and their plants, and which would ensure the best relationship between each department. It would Improve the communication In Ordain Manufacturing and, thus. Save time and money after it is finally implemented. Security Controls Security and secure ways of doing business should always be an most level of concern in any project.Security Is primarily handled and managed by the operations group, which is the same staff that is responsible for operating in installing security intros and functions such as, Intrusion Protection Systems, Intrusion Detection Systems, firewalls, and recovery and routine backup operations. Yet, this system developers also share responsibility when it comes to security, especially when it's inside the IT and information systems. The application architecture should be run on Linux/Null-based server or Windows 7 Server Edition.Any additional software o r programs that would later be needed could be programmed in-house as a development project. Interfaces: â€Å"Interface design is the process of defining how the system will interact with external entities, e. G. Customers, suppliers, other systems† (Dennis, Wisdom, ; Roth, 2009). System interfaces require a high level of security because they are well capable of exchanging different information with other information systems. Password requirements can achieve a high level of security by themselves, and are considered secure methods to manage employee files, private and confident documents, or company tax records.Password requirements also help prevent internal security threats, like employees trying to access another employee's computer. Network: one recommendation this consultant has is incorporating a database that is accompanied and would be accessible only via a PLAN (Virtual Local Area Network). This allows a trusted employee to update, view, and modify if necessary so me basic level information that would be subject to confirmation bias supervisor or other payroll clerk.Access such as this would definitely require the use of a password and surname for security methods. Also, methods of security that would be of a most level would be the three factor authentication method, which would be: surname with password and also a fingerprint scan. Also, the third-party organizations that handle Radian's employee's benefits, like their workers compensation and health infinite, should be audited every year for the purpose of com edited this and accuracy, and this would also ensure the most correct processes within Ordain.Physical Data Flow Diagrams Implementation designs and decisions describe how an information system will work, and one has to know this before designing application logic of the information system. The physical data flow diagrams of this information would show all the details including, but not limited to, the data stores that refer to the d atabase tables and the files, the human actions or programs that perform the processes, as well as he physical transfer media for those data flows. If one maintains a proper in clear implementation, it will always provide the services that you will expect with complete and accurate results.Ordain wants to resolve the additional issues regarding the implementation and processes of the final changes, as soon as possible. There will be a meeting next week to discuss this very issue, and this author will work as hard as possible to ensure that all this companies needs will be satisfied and met, and in secure and safe manner as well. Conclusion It has been shown, by the data flow diagrams as well as the basis of this report, that whatever issues had plagued the Human Resources Department, it can be fixed References Systems Analysis and Design, 4th Edition. Individual Assignment Individual Assignment Topic: Apply your understandings of financial statements, working capital management, financial planning to identify, analyze, and propose solutions to the problems presented in â€Å"Clarkson Lumber Company† case. Requirements: * Answer all the guideline questions. Support your answer with necessary calculations, forecasts, analysis†¦ * Summarize the problems and propose solutions for â€Å"Clarkson Lumber Company† based on your answers and analysis of the guideline questions.Assessments: * This is an individual assignment. Although you are encouraged to discuss the case with your lecturer and fellow students, you are required to write the report on your own. Any evidence of plagiarisms will result in a disqualification. * Your total score is 100 pts (answers to the guideline questions 60 pts, summary of the problems 10 pts, and proposed solution 30 pts) * Format: use Arial 11; 1. 15 line spacing. * Deadline: March 31st, 2013Guideline questio ns: 1. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? (5 pts) 2. How has Mr. Clarkson met the financing needs of the company during the period 1993 through 1995? Has the financial strength of Clarkson Lumber improved or deteriorated? (15 pts) 3. How attractive is it to take the trade discounts? (10 pts) 4. Do you agree with Mr. Clarkson’s estimate of the company’s loan requirements?How much will he need to finance the expected expansion in sales to $5. 5 million in 1996 and to take all trade discounts? (15 pts) 5. As Mr. Clarkson’s financial adviser, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Clarkson’s loan request, and if so, what conditions would you put on the loan? (15 pts) Individual Assignment Individual Assignment Topic: Apply your understandings of financial statements, working capital management, financial planning to identify, analyze, and propose solutions to the problems presented in â€Å"Clarkson Lumber Company† case. Requirements: * Answer all the guideline questions. Support your answer with necessary calculations, forecasts, analysis†¦ * Summarize the problems and propose solutions for â€Å"Clarkson Lumber Company† based on your answers and analysis of the guideline questions.Assessments: * This is an individual assignment. Although you are encouraged to discuss the case with your lecturer and fellow students, you are required to write the report on your own. Any evidence of plagiarisms will result in a disqualification. * Your total score is 100 pts (answers to the guideline questions 60 pts, summary of the problems 10 pts, and proposed solution 30 pts) * Format: use Arial 11; 1. 15 line spacing. * Deadline: March 31st, 2013Guideline questio ns: 1. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? (5 pts) 2. How has Mr. Clarkson met the financing needs of the company during the period 1993 through 1995? Has the financial strength of Clarkson Lumber improved or deteriorated? (15 pts) 3. How attractive is it to take the trade discounts? (10 pts) 4. Do you agree with Mr. Clarkson’s estimate of the company’s loan requirements?How much will he need to finance the expected expansion in sales to $5. 5 million in 1996 and to take all trade discounts? (15 pts) 5. As Mr. Clarkson’s financial adviser, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Clarkson’s loan request, and if so, what conditions would you put on the loan? (15 pts)