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Overview

Final Exam Overview of Concepts Used Section 1 1.) Proforma – Income statement 2.) Amortization schedule 3.) Solver use/ Goal seek Section 2 4.) Solver use / Goal seek 5.) Using Max/Min functions 6.) Straddle option strategy Section 3 7.) V-look up 8.) Data Tables

Pro Forma Income Statements

Information Section				Proposed Recommendation
Table 1				Table 5
Historical Information				Pro Forma Income Statement
Total donations raised since April 2005	$ 12,300,000			Demand Scenarios	1	No change in demand
Water bottles sold to date	246,000,000			UNITS SOLD	22,363,636
Years	11			SPU	$ 2.25
Average bottles sold per year	22,363,636			Total Revenue	$ 50,318,181.00
				TOTAL DONATION	$ 2,236,363.60
Table 2				NET REV	$ 48,081,817.40
Key Pricing Structure for Ethos Water				NET Margin	95.56%
	Current	Proposed	% increase
Price per bottle	$ 1.95	$ 2.25	15.38%
Donation flat amount	$ 0.05	$ 0.10	100%
Donation percentage of selling price	2.56%	4.44%	73.33%
Table 3
Yearly Demand Scenario Table
1	No change in demand	0.00%
2	Decrease in demand	-10%
3	Increased demand	10%
Average Bottles Sold per Year
1	No change in demand	22,363,636
2	Decrease in demand	20,127,273
3	Increased demand	24,600,000
Table 4
Base Case Income Statement
Demand Scenarios	1	No change in demand
UNITS SOLD	22,363,636
SPU	$ 1.95
Total Revenue	$ 43,609,090.20
TOTAL DONATION	$ 1,118,181.80
NET REV	42,490,908
NET Margin	97.44%

Key Stats Implications

Comparison of Key Stats
	Current	Proposed	Difference	% Change
Demand Scenarios	1	1	No change in demand
UNITS SOLD	22,363,636	22,363,636	- 0	0.00%
SPU	$ 1.95	$ 2.25	$ 0.30	15.38%
Total Revenue	$ 43,609,090.20	$ 50,318,181.00	$ 6,709,090.80	15.38%
TOTAL DONATION	$ 1,118,181.80	$ 2,236,363.60	$ 1,118,181.80	100.00%
NET REV	$ 42,490,908.40	$ 48,081,817.40	$ 5,590,909.00	13.16% Administrator: Like stock returns… (End/Beg) -1
NET Margin	97.44%	95.56%	-1.88%	-1.93%

Current Ethos Water @ $1.95

$1,118,181.80

$42,490,908.40

TOTAL DONATION NET REV 1118181.8 42490908.399999999

Proposed Ethos Water @ $2.25

TOTAL DONATION NET REV

TOTAL DONATION NET REV 2236363.6 48081817.399999999

DATA TABLE

		DATA TABLE
				Affect on demand
Normal Units Sold	22,363,636	Net Revenue	43,273,635.66	0%	-5%	-10%	-15%	-20%	-25%	-30%	-35%	-40%	-45%	-50%
Affect on demand	-10%	Price	$ 1.80	$ 38,018,181	$ 36,117,272	$ 34,216,363	$ 32,315,454	$ 30,414,545	$ 28,513,636	$ 26,612,727	$ 24,711,818	$ 22,810,909	$ 20,910,000	$ 19,009,091
New Output	20,127,272.40		$ 1.85	$ 39,136,363	$ 37,179,545	$ 35,222,727	$ 33,265,909	$ 31,309,090	$ 29,352,272	$ 27,395,454	$ 25,438,636	$ 23,481,818	$ 21,525,000	$ 19,568,182
Selling price	$ 2.25		$ 1.90	$ 40,254,545	$ 38,241,818	$ 36,229,090	$ 34,216,363	$ 32,203,636	$ 30,190,909	$ 28,178,181	$ 26,165,454	$ 24,152,727	$ 22,140,000	$ 20,127,272
Total Revenue	45,286,362.90		$ 1.95	$ 41,372,727	$ 39,304,090	$ 37,235,454	$ 35,166,818	$ 33,098,181	$ 31,029,545	$ 28,960,909	$ 26,892,272	$ 24,823,636	$ 22,755,000	$ 20,686,363
Donation	$ 0.10		$ 2.00	$ 42,490,908	$ 40,366,363	$ 38,241,818	$ 36,117,272	$ 33,992,727	$ 31,868,181	$ 29,743,636	$ 27,619,090	$ 25,494,545	$ 23,370,000	$ 21,245,454
Total Donation	2,012,727.24		$ 2.05	$ 43,609,090	$ 41,428,636	$ 39,248,181	$ 37,067,727	$ 34,887,272	$ 32,706,818	$ 30,526,363	$ 28,345,909	$ 26,165,454	$ 23,985,000	$ 21,804,545
Net Revenue	43,273,635.66		$ 2.10	$ 44,727,272	$ 42,490,908	$ 40,254,545	$ 38,018,181	$ 35,781,818	$ 33,545,454	$ 31,309,090	$ 29,072,727	$ 26,836,363	$ 24,600,000	$ 22,363,636
			$ 2.15	$ 45,845,454	$ 43,553,181	$ 41,260,908	$ 38,968,636	$ 36,676,363	$ 34,384,090	$ 32,091,818	$ 29,799,545	$ 27,507,272	$ 25,215,000	$ 22,922,727
Base Case Net Revenue			$ 2.20	$ 46,963,636	$ 44,615,454	$ 42,267,272	$ 39,919,090	$ 37,570,908	$ 35,222,727	$ 32,874,545	$ 30,526,363	$ 28,178,181	$ 25,830,000	$ 23,481,818
$ 42,490,908.40			$ 2.25	$ 48,081,817	$ 45,677,727	$ 43,273,636	$ 40,869,545	$ 38,465,454	$ 36,061,363	$ 33,657,272	$ 31,253,181	$ 28,849,090	$ 26,445,000	$ 24,040,909
			$ 2.30	$ 49,199,999	$ 46,739,999	$ 44,279,999	$ 41,819,999	$ 39,359,999	$ 36,899,999	$ 34,439,999	$ 31,979,999	$ 29,520,000	$ 27,060,000	$ 24,600,000
			$ 2.35	$ 50,318,181	$ 47,802,272	$ 45,286,363	$ 42,770,454	$ 40,254,545	$ 37,738,636	$ 35,222,727	$ 32,706,818	$ 30,190,909	$ 27,675,000	$ 25,159,091
			$ 2.40	$ 51,436,363	$ 48,864,545	$ 46,292,727	$ 43,720,908	$ 41,149,090	$ 38,577,272	$ 36,005,454	$ 33,433,636	$ 30,861,818	$ 28,290,000	$ 25,718,181
			$ 2.45	$ 52,554,545	$ 49,926,817	$ 47,299,090	$ 44,671,363	$ 42,043,636	$ 39,415,908	$ 36,788,181	$ 34,160,454	$ 31,532,727	$ 28,905,000	$ 26,277,272
			$ 2.50	$ 53,672,726	$ 50,989,090	$ 48,305,454	$ 45,621,817	$ 42,938,181	$ 40,254,545	$ 37,570,908	$ 34,887,272	$ 32,203,636	$ 29,520,000	$ 26,836,363
			$ 2.55	$ 54,790,908	$ 52,051,363	$ 49,311,817	$ 46,572,272	$ 43,832,727	$ 41,093,181	$ 38,353,636	$ 35,614,090	$ 32,874,545	$ 30,135,000	$ 27,395,454
			$ 2.60	$ 55,909,090	$ 53,113,636	$ 50,318,181	$ 47,522,726	$ 44,727,272	$ 41,931,818	$ 39,136,363	$ 36,340,909	$ 33,545,454	$ 30,750,000	$ 27,954,545
			$ 2.65	$ 57,027,272	$ 54,175,908	$ 51,324,545	$ 48,473,181	$ 45,621,817	$ 42,770,454	$ 39,919,090	$ 37,067,727	$ 34,216,363	$ 31,364,999	$ 28,513,636
			$ 2.70	$ 58,145,454	$ 55,238,181	$ 52,330,908	$ 49,423,636	$ 46,516,363	$ 43,609,090	$ 40,701,818	$ 37,794,545	$ 34,887,272	$ 31,979,999	$ 29,072,727
			$ 2.75	$ 59,263,635	$ 56,300,454	$ 53,337,272	$ 50,374,090	$ 47,410,908	$ 44,447,727	$ 41,484,545	$ 38,521,363	$ 35,558,181	$ 32,594,999	$ 29,631,818
			$ 2.80	$ 60,381,817	$ 57,362,726	$ 54,343,635	$ 51,324,545	$ 48,305,454	$ 45,286,363	$ 42,267,272	$ 39,248,181	$ 36,229,090	$ 33,209,999	$ 30,190,909
			$ 2.85	$ 61,499,999	$ 58,424,999	$ 55,349,999	$ 52,274,999	$ 49,199,999	$ 46,124,999	$ 43,049,999	$ 39,974,999	$ 36,899,999	$ 33,824,999	$ 30,750,000
			$ 2.90	$ 62,618,181	$ 59,487,272	$ 56,356,363	$ 53,225,454	$ 50,094,545	$ 46,963,636	$ 43,832,727	$ 40,701,818	$ 37,570,908	$ 34,439,999	$ 31,309,090
			$ 2.95	$ 63,736,363	$ 60,549,544	$ 57,362,726	$ 54,175,908	$ 50,989,090	$ 47,802,272	$ 44,615,454	$ 41,428,636	$ 38,241,818	$ 35,054,999	$ 31,868,181
			$ 3.00	$ 64,854,544	$ 61,611,817	$ 58,369,090	$ 55,126,363	$ 51,883,636	$ 48,640,908	$ 45,398,181	$ 42,155,454	$ 38,912,727	$ 35,669,999	$ 32,427,272

Note: Cells hilghlighted in yellow can vary. Cells highlighted in green denote the prices at which the proposed net revenue will be greater than the base case net revenue. The cell highlighted in purple is what I am proposing.

Amortization Schedule Base Case

Loan	$ 50,000,000
Int Rate	5%		Payment	$ 943,561.68
Months	60
Down payment	$ - 0
Total Interest	$ 6,613,700.93
Months	BEG Principal	Interest	Payment	Principal Paid	END BAL
0	$ 50,000,000.00	0	0	$ - 0	$ 50,000,000.00
1	$ 50,000,000.00	$ 208,333.33	$943,561.68	$ 735,228.35	$ 49,264,771.65
2	$ 49,264,771.65	$ 205,269.88	$ 943,561.68	$ 738,291.80	$ 48,526,479.85
3	$ 48,526,479.85	$ 202,193.67	$ 943,561.68	$ 741,368.02	$ 47,785,111.83
4	$ 47,785,111.83	$ 199,104.63	$ 943,561.68	$ 744,457.05	$ 47,040,654.79
5	$ 47,040,654.79	$ 196,002.73	$ 943,561.68	$ 747,558.95	$ 46,293,095.83
6	$ 46,293,095.83	$ 192,887.90	$ 943,561.68	$ 750,673.78	$ 45,542,422.05
7	$ 45,542,422.05	$ 189,760.09	$ 943,561.68	$ 753,801.59	$ 44,788,620.46
8	$ 44,788,620.46	$ 186,619.25	$ 943,561.68	$ 756,942.43	$ 44,031,678.03
9	$ 44,031,678.03	$ 183,465.33	$ 943,561.68	$ 760,096.36	$ 43,271,581.67
10	$ 43,271,581.67	$ 180,298.26	$ 943,561.68	$ 763,263.43	$ 42,508,318.25
11	$ 42,508,318.25	$ 177,117.99	$ 943,561.68	$ 766,443.69	$ 41,741,874.56
12	$ 41,741,874.56	$ 173,924.48	$ 943,561.68	$ 769,637.20	$ 40,972,237.35
13	$ 40,972,237.35	$ 170,717.66	$ 943,561.68	$ 772,844.03	$ 40,199,393.32
14	$ 40,199,393.32	$ 167,497.47	$ 943,561.68	$ 776,064.21	$ 39,423,329.11
15	$ 39,423,329.11	$ 164,263.87	$ 943,561.68	$ 779,297.81	$ 38,644,031.30
16	$ 38,644,031.30	$ 161,016.80	$ 943,561.68	$ 782,544.89	$ 37,861,486.42
17	$ 37,861,486.42	$ 157,756.19	$ 943,561.68	$ 785,805.49	$ 37,075,680.93
18	$ 37,075,680.93	$ 154,482.00	$ 943,561.68	$ 789,079.68	$ 36,286,601.25
19	$ 36,286,601.25	$ 151,194.17	$ 943,561.68	$ 792,367.51	$ 35,494,233.74
20	$ 35,494,233.74	$ 147,892.64	$ 943,561.68	$ 795,669.04	$ 34,698,564.70
21	$ 34,698,564.70	$ 144,577.35	$ 943,561.68	$ 798,984.33	$ 33,899,580.37
22	$ 33,899,580.37	$ 141,248.25	$ 943,561.68	$ 802,313.43	$ 33,097,266.94
23	$ 33,097,266.94	$ 137,905.28	$ 943,561.68	$ 805,656.40	$ 32,291,610.54
24	$ 32,291,610.54	$ 134,548.38	$ 943,561.68	$ 809,013.30	$ 31,482,597.23
25	$ 31,482,597.23	$ 131,177.49	$ 943,561.68	$ 812,384.19	$ 30,670,213.04
26	$ 30,670,213.04	$ 127,792.55	$ 943,561.68	$ 815,769.13	$ 29,854,443.91
27	$ 29,854,443.91	$ 124,393.52	$ 943,561.68	$ 819,168.17	$ 29,035,275.74
28	$ 29,035,275.74	$ 120,980.32	$ 943,561.68	$ 822,581.37	$ 28,212,694.38
29	$ 28,212,694.38	$ 117,552.89	$ 943,561.68	$ 826,008.79	$ 27,386,685.59
30	$ 27,386,685.59	$ 114,111.19	$ 943,561.68	$ 829,450.49	$ 26,557,235.10
31	$ 26,557,235.10	$ 110,655.15	$ 943,561.68	$ 832,906.54	$ 25,724,328.56
32	$ 25,724,328.56	$ 107,184.70	$ 943,561.68	$ 836,376.98	$ 24,887,951.58
33	$ 24,887,951.58	$ 103,699.80	$ 943,561.68	$ 839,861.88	$ 24,048,089.70
34	$ 24,048,089.70	$ 100,200.37	$ 943,561.68	$ 843,361.31	$ 23,204,728.39
35	$ 23,204,728.39	$ 96,686.37	$ 943,561.68	$ 846,875.31	$ 22,357,853.07
36	$ 22,357,853.07	$ 93,157.72	$ 943,561.68	$ 850,403.96	$ 21,507,449.11
37	$ 21,507,449.11	$ 89,614.37	$ 943,561.68	$ 853,947.31	$ 20,653,501.80
38	$ 20,653,501.80	$ 86,056.26	$ 943,561.68	$ 857,505.42	$ 19,795,996.38
39	$ 19,795,996.38	$ 82,483.32	$ 943,561.68	$ 861,078.36	$ 18,934,918.01
40	$ 18,934,918.01	$ 78,895.49	$ 943,561.68	$ 864,666.19	$ 18,070,251.82
41	$ 18,070,251.82	$ 75,292.72	$ 943,561.68	$ 868,268.97	$ 17,201,982.86
42	$ 17,201,982.86	$ 71,674.93	$ 943,561.68	$ 871,886.75	$ 16,330,096.10
43	$ 16,330,096.10	$ 68,042.07	$ 943,561.68	$ 875,519.62	$ 15,454,576.49
44	$ 15,454,576.49	$ 64,394.07	$ 943,561.68	$ 879,167.61	$ 14,575,408.87
45	$ 14,575,408.87	$ 60,730.87	$ 943,561.68	$ 882,830.81	$ 13,692,578.06
46	$ 13,692,578.06	$ 57,052.41	$ 943,561.68	$ 886,509.27	$ 12,806,068.79
47	$ 12,806,068.79	$ 53,358.62	$ 943,561.68	$ 890,203.06	$ 11,915,865.73
48	$ 11,915,865.73	$ 49,649.44	$ 943,561.68	$ 893,912.24	$ 11,021,953.48
49	$ 11,021,953.48	$ 45,924.81	$ 943,561.68	$ 897,636.88	$ 10,124,316.61
50	$ 10,124,316.61	$ 42,184.65	$ 943,561.68	$ 901,377.03	$ 9,222,939.58
51	$ 9,222,939.58	$ 38,428.91	$ 943,561.68	$ 905,132.77	$ 8,317,806.81
52	$ 8,317,806.81	$ 34,657.53	$ 943,561.68	$ 908,904.15	$ 7,408,902.66
53	$ 7,408,902.66	$ 30,870.43	$ 943,561.68	$ 912,691.25	$ 6,496,211.40
54	$ 6,496,211.40	$ 27,067.55	$ 943,561.68	$ 916,494.13	$ 5,579,717.27
55	$ 5,579,717.27	$ 23,248.82	$ 943,561.68	$ 920,312.86	$ 4,659,404.41
56	$ 4,659,404.41	$ 19,414.19	$ 943,561.68	$ 924,147.50	$ 3,735,256.91
57	$ 3,735,256.91	$ 15,563.57	$ 943,561.68	$ 927,998.11	$ 2,807,258.80
58	$ 2,807,258.80	$ 11,696.91	$ 943,561.68	$ 931,864.77	$ 1,875,394.03
59	$ 1,875,394.03	$ 7,814.14	$ 943,561.68	$ 935,747.54	$ 939,646.49
60	$ 939,646.49	$ 3,915.19	$ 943,561.68	$ 939,646.49	$ 0.00
TOTAL		$ 6,613,700.93

Amortization Schedule (Solver)

Loan	$ 50,000,000.00		Old Payment	$ 943,561.68
Int Rate	5%		New Payment	$ 713,338.64
Months	60		Difference	$ (230,223.04)
Down payment	$ 12,199,681.76
Total Interest	$ 5,000,000.00
Months	BEG Principal	Interest	Payment	Principal Paid	END BAL
0	$ 50,000,000.00	0	0	$ 12,199,681.76	$ 37,800,318.24
1	$ 37,800,318.24	$ 157,501.33	$713,338.64	$ 555,837.31	$ 37,244,480.93
2	$ 37,244,480.93	$ 155,185.34	$ 713,338.64	$ 558,153.30	$ 36,686,327.63
3	$ 36,686,327.63	$ 152,859.70	$ 713,338.64	$ 560,478.94	$ 36,125,848.69
4	$ 36,125,848.69	$ 150,524.37	$ 713,338.64	$ 562,814.27	$ 35,563,034.43
5	$ 35,563,034.43	$ 148,179.31	$ 713,338.64	$ 565,159.33	$ 34,997,875.10
6	$ 34,997,875.10	$ 145,824.48	$ 713,338.64	$ 567,514.16	$ 34,430,360.94
7	$ 34,430,360.94	$ 143,459.84	$ 713,338.64	$ 569,878.80	$ 33,860,482.14
8	$ 33,860,482.14	$ 141,085.34	$ 713,338.64	$ 572,253.30	$ 33,288,228.85
9	$ 33,288,228.85	$ 138,700.95	$ 713,338.64	$ 574,637.68	$ 32,713,591.16
10	$ 32,713,591.16	$ 136,306.63	$ 713,338.64	$ 577,032.01	$ 32,136,559.15
11	$ 32,136,559.15	$ 133,902.33	$ 713,338.64	$ 579,436.31	$ 31,557,122.85
12	$ 31,557,122.85	$ 131,488.01	$ 713,338.64	$ 581,850.63	$ 30,975,272.22
13	$ 30,975,272.22	$ 129,063.63	$ 713,338.64	$ 584,275.00	$ 30,390,997.22
14	$ 30,390,997.22	$ 126,629.16	$ 713,338.64	$ 586,709.48	$ 29,804,287.74
15	$ 29,804,287.74	$ 124,184.53	$ 713,338.64	$ 589,154.11	$ 29,215,133.63
16	$ 29,215,133.63	$ 121,729.72	$ 713,338.64	$ 591,608.91	$ 28,623,524.72
17	$ 28,623,524.72	$ 119,264.69	$ 713,338.64	$ 594,073.95	$ 28,029,450.76
18	$ 28,029,450.76	$ 116,789.38	$ 713,338.64	$ 596,549.26	$ 27,432,901.51
19	$ 27,432,901.51	$ 114,303.76	$ 713,338.64	$ 599,034.88	$ 26,833,866.62
20	$ 26,833,866.62	$ 111,807.78	$ 713,338.64	$ 601,530.86	$ 26,232,335.76
21	$ 26,232,335.76	$ 109,301.40	$ 713,338.64	$ 604,037.24	$ 25,628,298.53
22	$ 25,628,298.53	$ 106,784.58	$ 713,338.64	$ 606,554.06	$ 25,021,744.47
23	$ 25,021,744.47	$ 104,257.27	$ 713,338.64	$ 609,081.37	$ 24,412,663.10
24	$ 24,412,663.10	$ 101,719.43	$ 713,338.64	$ 611,619.21	$ 23,801,043.89
25	$ 23,801,043.89	$ 99,171.02	$ 713,338.64	$ 614,167.62	$ 23,186,876.27
26	$ 23,186,876.27	$ 96,611.98	$ 713,338.64	$ 616,726.65	$ 22,570,149.62
27	$ 22,570,149.62	$ 94,042.29	$ 713,338.64	$ 619,296.35	$ 21,950,853.27
28	$ 21,950,853.27	$ 91,461.89	$ 713,338.64	$ 621,876.75	$ 21,328,976.52
29	$ 21,328,976.52	$ 88,870.74	$ 713,338.64	$ 624,467.90	$ 20,704,508.62
30	$ 20,704,508.62	$ 86,268.79	$ 713,338.64	$ 627,069.85	$ 20,077,438.77
31	$ 20,077,438.77	$ 83,655.99	$ 713,338.64	$ 629,682.64	$ 19,447,756.12
32	$ 19,447,756.12	$ 81,032.32	$ 713,338.64	$ 632,306.32	$ 18,815,449.80
33	$ 18,815,449.80	$ 78,397.71	$ 713,338.64	$ 634,940.93	$ 18,180,508.87
34	$ 18,180,508.87	$ 75,752.12	$ 713,338.64	$ 637,586.52	$ 17,542,922.36
35	$ 17,542,922.36	$ 73,095.51	$ 713,338.64	$ 640,243.13	$ 16,902,679.23
36	$ 16,902,679.23	$ 70,427.83	$ 713,338.64	$ 642,910.81	$ 16,259,768.42
37	$ 16,259,768.42	$ 67,749.04	$ 713,338.64	$ 645,589.60	$ 15,614,178.82
38	$ 15,614,178.82	$ 65,059.08	$ 713,338.64	$ 648,279.56	$ 14,965,899.26
39	$ 14,965,899.26	$ 62,357.91	$ 713,338.64	$ 650,980.72	$ 14,314,918.54
40	$ 14,314,918.54	$ 59,645.49	$ 713,338.64	$ 653,693.14	$ 13,661,225.39
41	$ 13,661,225.39	$ 56,921.77	$ 713,338.64	$ 656,416.86	$ 13,004,808.53
42	$ 13,004,808.53	$ 54,186.70	$ 713,338.64	$ 659,151.94	$ 12,345,656.59
43	$ 12,345,656.59	$ 51,440.24	$ 713,338.64	$ 661,898.40	$ 11,683,758.19
44	$ 11,683,758.19	$ 48,682.33	$ 713,338.64	$ 664,656.31	$ 11,019,101.88
45	$ 11,019,101.88	$ 45,912.92	$ 713,338.64	$ 667,425.71	$ 10,351,676.17
46	$ 10,351,676.17	$ 43,131.98	$ 713,338.64	$ 670,206.65	$ 9,681,469.51
47	$ 9,681,469.51	$ 40,339.46	$ 713,338.64	$ 672,999.18	$ 9,008,470.33
48	$ 9,008,470.33	$ 37,535.29	$ 713,338.64	$ 675,803.34	$ 8,332,666.99
49	$ 8,332,666.99	$ 34,719.45	$ 713,338.64	$ 678,619.19	$ 7,654,047.80
50	$ 7,654,047.80	$ 31,891.87	$ 713,338.64	$ 681,446.77	$ 6,972,601.02
51	$ 6,972,601.02	$ 29,052.50	$ 713,338.64	$ 684,286.13	$ 6,288,314.89
52	$ 6,288,314.89	$ 26,201.31	$ 713,338.64	$ 687,137.33	$ 5,601,177.57
53	$ 5,601,177.57	$ 23,338.24	$ 713,338.64	$ 690,000.40	$ 4,911,177.17
54	$ 4,911,177.17	$ 20,463.24	$ 713,338.64	$ 692,875.40	$ 4,218,301.77
55	$ 4,218,301.77	$ 17,576.26	$ 713,338.64	$ 695,762.38	$ 3,522,539.39
56	$ 3,522,539.39	$ 14,677.25	$ 713,338.64	$ 698,661.39	$ 2,823,878.00
57	$ 2,823,878.00	$ 11,766.16	$ 713,338.64	$ 701,572.48	$ 2,122,305.52
58	$ 2,122,305.52	$ 8,842.94	$ 713,338.64	$ 704,495.70	$ 1,417,809.82
59	$ 1,417,809.82	$ 5,907.54	$ 713,338.64	$ 707,431.10	$ 710,378.73
60	$ 710,378.73	$ 2,959.91	$ 713,338.64	$ 710,378.73	-$ 0.00
TOTAL		$ 5,000,000.00

SBUX Long Straddle

SBUX Call & Put Expiring Oct. 16, 2016		GOAL:	VOLATILITY
Number of Straddles	1			Price @ expiration	Long Straddle	Per Share	Long Call	Long Put
Long Call				35.00	1,308.00	13.08	-435.00	1,743.00
Premium	4.35			36.00	1,208.00	12.08	-435.00	1,643.00
strike	55			37.00	1,108.00	11.08	-435.00	1,543.00
Call Break-even	59.35			38.00	1,008.00	10.08	-435.00	1,443.00
Long Put				39.00	908.00	9.08	-435.00	1,343.00
Premium	2.57			40.00	808.00	8.08	-435.00	1,243.00
strike	55			41.00	708.00	7.08	-435.00	1,143.00
Put Break-even	52.43			42.00	608.00	6.08	-435.00	1,043.00
				43.00	508.00	5.08	-435.00	943.00
Long Straddle Strategy				44.00	408.00	4.08	-435.00	843.00
Low Break-even	48.08			45.00	308.00	3.08	-435.00	743.00
High Break-even	61.92			46.00	208.00	2.08	-435.00	643.00
Max Loss	(692.00)			47.00	108.00	1.08	-435.00	543.00
Max Gain when stock drops	4,808.00			48.00	8.00	0.08	-435.00	443.00
Max Gain when stock increases	Infinite			49.00	-92.00	-0.92	-435.00	343.00
Required underlying move (±)	12.58% Administrator: Administrator: Keep in mind that this is going to be for 6months later.			50.00	-192.00	-1.92	-435.00	243.00
				51.00	-292.00	-2.92	-435.00	143.00
Graph				52.00	-392.00	-3.92	-435.00	43.00
Min price	35			53.00	-492.00	-4.92	-435.00	-57.00
Increments	1			54.00	-592.00	-5.92	-435.00	-157.00
				55.00	-692.00	-6.92	-435.00	-257.00
				56.00	-592.00	-5.92	-335.00	-257.00
				57.00	-492.00	-4.92	-235.00	-257.00
				58.00	-392.00	-3.92	-135.00	-257.00
				59.00	-292.00	-2.92	-35.00	-257.00
				60.00	-192.00	-1.92	65.00	-257.00
				61.00	-92.00	-0.92	165.00	-257.00
				62.00	8.00	0.08	265.00	-257.00
				63.00	108.00	1.08	365.00	-257.00
				64.00	208.00	2.08	465.00	-257.00
				65.00	308.00	3.08	565.00	-257.00
				66.00	408.00	4.08	665.00	-257.00
				67.00	508.00	5.08	765.00	-257.00
				68.00	608.00	6.08	865.00	-257.00
				69.00	708.00	7.08	965.00	-257.00
				70.00	808.00	8.08	1,065.00	-257.00
				71.00	908.00	9.08	1,165.00	-257.00
				72.00	1,008.00	10.08	1,265.00	-257.00
				73.00	1,108.00	11.08	1,365.00	-257.00
				74.00	1,208.00	12.08	1,465.00	-257.00
				75.00	1,308.00	13.08	1,565.00	-257.00
				76.00	1,408.00	14.08	1,665.00	-257.00
				77.00	1,508.00	15.08	1,765.00	-257.00
				78.00	1,608.00	16.08	1,865.00	-257.00
				79.00	1,708.00	17.08	1,965.00	-257.00
				80.00	1,808.00	18.08	2,065.00	-257.00

Long Straddle

Long Straddle 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 1308 1208 1108 1008 908 808 708 608 508.00000000000006 408.00000000000006 308.00000000000006 208.00000000000006 108.00000000000006 8.0000000000000568 -91.999999999999943 -191.99999999999991 -291.99999999999989 -391.99999999999994 -491.99999999999994 -591.99999999999989 -692 -592 -492 -392 -291.99999999999994 -191.99999999999997 -91.999999999999972 8.0000000000000568 108.00000000000006 208.00000000000006 308 408 508 608 708 808 908 1008 1108 1208 1308 1407.9999999999998 1507.9999999999998 1607.9999999999998 1707.9999999999998 1808 Long Call 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -434.99999999999994 -334.99999999999994 -234.99999999999997 -134.99999999999997 -34.999999999999964 65.000000000000028 165.00000000000003 265.00000000000006 365.00000000000006 465.00000000000006 565 665 765 865 965 1065 1165 1265 1365 1465 1565 1664.9999999999998 1764.9999999999998 1864.9999999999998 1964.9999999999998 2065 Long Put 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 1743 1643 1543 1443 1343 1243 1143 1043 943 843 743 643 543 443 343 243.00000000000003 143.00000000000003 43.000000000000014 -56.999999999999986 -156.99999999999997 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257 -257

Price at Expiration

Profit/Loss

References

Works Cited "Ethos® Water Fund." Starbucks Coffee Company. N.p., n.d. Web. 25 Apr. 2016. "Starbucks Corp (SBUX :)." Starbucks Corp. N.p., n.d. Web. 30 Apr. 2016.