Atlantic Computers Pricing Option

  • Mathematical / Statistical Background for Option Pricing

    follows that       12 12  u   u  1 1 2  e du  2  e 2 du  N      2   hence we obtain  1 t  2 1  1 z2 t  z 2 e dz  e 2 N      as claimed.  e 2  7 Theorem (Key Result for option pricing): Let V ~ log normal  m, s 2  so that the standard deviation of the log of V is s  var  log e V   Then the expectation E  max V  K ,0     is given by the formula E  max V  K ,0    E V   N  d1   K  N  d 2

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  • Atlantic Computers Pricing Option

    Individual’s Assignment Atlantic Computer: A Bundle of Pricing Options As Atlantic computer was largest manufacturer of servers and other hi-tech product, Jason Jowers has been assigned the task of developing the pricing structure for the Atlantic Bundle, a unique combination of the TRONN server along with the software tool - Performance Enhancing Server Accelerator – called PESA. The TRONN server has been specifically designed to address the current US market demand. In conjunction with the

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  • Atlantic Case

    Problem Definition Jason Jowers, a newly minted MBA, had joined Atlantic Computer just four months ago as the youngest product manager. He would be responsible for developing the pricing strategy for the "Atlantic Bundle" (i.e., the new Tronn server and the PESA software tool), which had been developed specifically to meet an emerging basic server market, a new market to the company. But it had to compete with Zink server of Ontario Computer, its major rival in this market. 2. Situation analysis

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  • Pricing

    to make relates to pricing its products or services. If consumers or organizational buyers perceive a price to be too high, they may purchase competitive brands or substitute products, leading to a loss of sales and profits for the firm. If the price is too low, sales might increase, but profitability may suffer. Thus, pricing decisions must be given careful consideration when a firm is introducing a new product or planning a short or long- term price change. Price and Pricing defined Price is

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  • Options

    Risk is the potential that a chosen action or activity will lead to a loss. All of the above parties are derivative products and they allow risk related to the price of the underlying asset to be transferred from one party to other parties. Futures and options serve different needs in the capital market and will forever be important elements on their own in every well diversified portfolio. A futures contract is a standardized contract between two parties to buy or sell a specified asset of standardized

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  • Option Valuation

    Option Valuation Chapter 21 Intrinsic and Time Value intrinsic value of in-the-money options = the payoff that could be obtained from the immediate exercise of the option for a call option: stock price – exercise price for a put option: exercise price – stock price the intrinsic value for out-the-money or at-themoney options is equal to 0 time value of an option = difference between actual call price and intrinsic value as time approaches expiration date, time value goes to zero 21-2

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  • Pricing

    Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities

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  • Black-Scholes Option Pricing Model

    Question: Discuss how an increase in the value of each of the determinants of the option price in the Black-Scholes option pricing model for European options is likely to change the price of a call option. A derivative is a financial instrument that has a value determined by the price of something else, such as options. The crucial idea behind the derivation was to hedge perfectly the option by buying and selling the underlying asset in just the right way and consequently "eliminate risk"

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  • Atlantic Computer Case Study

    Atlantic Computer is known for providing top-notch, highly reliable products and had developed a reputation for providing high quality, responsive post-sales assistance. Atlantic Computer has produced the ‘Atlantic Bundle’ (Tronn+ PESA), 4 times faster, to compete against Ontario’s Zink in the basic server market. The challenge is to get the right pricing strategy for the Atlantic bundle keeping in mind consumer behavior as well as reaction of competitors in the same market especially Ontario. Competition

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  • Atlantic Comp

    Case Study : Atlantic Computers Index: Topic Sequence Company Overview Price Strategy adopted..........................................................................1.0 Matzer's reaction to your recommendation...............................................2.0 Cadena's reaction to your recommendation..............................................3.0 Customer's reaction..............................................................................4.0 Responses to

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  • Atlantic

    Departure and crossing of the Atlantic On 10 August 1519, the five ships under Magellan's command – Trinidad, San Antonio, Concepción, Victoria and Santiago – left Seville and descended the Guadalquivir River to Sanlúcar de Barrameda, at the mouth of the river. There they remained more than five weeks. Finally they set sail on 20 September. King Manuel I ordered a Portuguese naval detachment to pursue Magellan, but Magellan avoided them. After stopping at the Canary Islands, Magellan arrived at

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  • Pricing and Hedging Asian Options

      Pricing and Hedging Asian Options By Vineet B. Lakhlani   Pricing  and  Hedging  Asian  Options     Table of Contents   Table of Contents 1. Introduction to Derivatives 2. Exotic Options 2.1.  Introduction  to  Asian  Options   3.1. Binomial Option Pricing Model 3.2. Black-Scholes Model 3.2.1. Black-Scholes PDE Derivation 3.2.2. Black-Scholes Formula 1 2 3 4 4 5 6 7 3   3. Option Pricing Methodologies 4. Asian Option Pricing

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  • Black-Scholes Option Pricing Model

    Question: Discuss how an increase in the value of each of the determinants of the option price in the Black-Scholes option pricing model for European options is likely to change the price of a call option. A derivative is a financial instrument that has a value determined by the price of something else, such as options. The crucial idea behind the derivation was to hedge perfectly the option by buying and selling the underlying asset in just the right way and consequently "eliminate risk"

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  • Three Different Methods of Option Pricing

    Three different methods of option pricing The three different methods of option pricing are: The Black-Scholes model, binomial trees and Monte Carlo Simulation. The three different methods of option pricing are: The Black-Scholes model, binomial trees and Monte Carlo Simulation. The three different methods of option pricing are: The Black-Scholes model, binomial trees and Monte Carlo Simulation. The three different methods of option pricing are: The Black-Scholes model, binomial trees and

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  • Atlantic Computer

    Situation: * Atlantic Computer is a manufacturer of servers and high-tech products * Two market segments: High performance and Basic Servers * The Tronn was developed mainly for the emerging US market opportunity for basic web servers * The Performance Enhancing Server Accelerator (PESA) allows Tronn to perform four times faster than its usual speed for standard procedures * Atlantic has 20% market share in High Performance Servers with Radia * Two Tronn servers equivalent

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  • It Options

    a) What are smart phones? Smart phones are based on the theory of having both a phone and a computer all in one package. They use the concepts of being able to talk, send text messages, and accessing the internet because of the integration of computer technology to the phone technology. You store and take pictures, videos, documents, and various other options. b) What changed from 1G cellular technology to 2G technology? The 2G technology change was that it included the use and implementation

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  • Atlantic

    manajer produk termuda di Atlantic Computer , produsen besar server dan lainnya berteknologi tinggi produk , Jowers telah bergabung dengan perusahaan hanya empat bulan lalu sebagai MBA baru dicetak . Sekarang , segar dari rotasi manajemen yang termasuk proyek-proyek dalam manajemen produk , strategi , dan pengembangan bisnis , Jowers mendapatkan tembakan pertamanya di beberapa tanggung jawab nyata . Dia akan bertanggung jawab untuk mengembangkan strategi harga untuk " Atlantic Bundle " (yaitu , server

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  • Atlantic Computer Case Assignment

    Atlantic Computer: A Bundle of Pricing Options Case Assignment Benjamin Athens, Alayna Boyd, Amanda Ferguson, Jessica Harper, & Emily Wagman MKT370W 11:00 a.m. Introduction. Atlantic Computer, a large manufacturer of servers and other high-tech products, is currently feeling the pressure of developing a pricing strategy for their product offering the “Atlantic Bundle”.  Two markets exist in the server selling industry: traditional and basic.  Atlantic is already a market leader in the

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  • Atlantic Computer

    lenses also help the chicken farmer save the investment on the feed cost due to the beak. 2. In what geographic areas should ODI focus its efforts? 3. On what market segments (in addition to geographic) should ODI focus its effor? 4. What pricing policy should ODI adopt? 5. What level of marketing efforts should ODI be considering? In particular, what information, incentives, and technical assistance will be required to induce (a) trial and (b) repurchase? 6. What's a realistic goal

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  • Atlantic Computers

    Atlantic computers are the largest manufacturer of servers and other high tech products with a 20% market revenue share in the segment. The company plans to launch a basic server TRONN and software PESA due to growth in demand for basic servers. Important Details * competitor: ONTARIO ZINK * CAGR: 3%(BS segment) * TRONN along with PESA works FOUR times more efficiently. * Value of 2 TRONNs = Value of 4 ZINKs Four types of pricing strategies: * Competition based pricing * Cost plus pricing

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  • Atlantic Computer Case

    Server Division, Atlantic Computer Subject: The Current Situation at Atlantic Computer Company Introduction Atlantic Computer Company is currently in a crisis, determining how to price the Atlantic bundle is a decision that is crucial at this time. Atlantic is a manufacturer of servers and highly technological products and is currently in the process of entering a market that is led by Ontario Computers. This market is within the basic server segment, where Ontario Computers has 50% market share

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  • Atlantic Computer

    Executive summary Atlantic Computer is a firm that specializes in high performance servers and is known for selling top notch and highly reliable products. It has been the market leader of the high performance server segment with its Radia server for the last 30 years. However, the trend shows that the basic segment is growing significantly faster than the high performance segment in terms of growth. Now, this firm’s mail goal is to enter the basic segment by launching its new basic server “Tronn”

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  • Atlantic Computers

    Introduction Jason Jowers, who had recently been hired by the computer manufacturer, Atlantic Computer, needed to devise a pricing plan for the company’s newest products: The Atlantic Bundle. This bundle contained the Tronn server and its corresponding software, the PESA. After an initial marketing meeting with a few key players, Jowers had input from the head of the server division (Matzer), the director of the division’s R&D team (Jones), and the director of new product marketing (Fowler). In

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  • Atlantic Case

    Case # 4: Atlantic Computer: A Bundle of Pricing Options Marketing Management II 2/11/2014 DayTraderJournal.com Price Recommendation The Value-in-Use (50/50) Pricing is the preferred pricing method to charge DayTraderJournal.com because it provides maximum profit to Atlantic while offering an extremely competitive product and value to the consumer. However, due to how conservative DayTraderJournal purchasers are, we recommend that this price is slightly reduced from $8,400 to $6,800 (profit-sharing

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  • Options

    usually a sign of short-term uncertainty and puts are often purchased as “insurance” on stocks. What’s more, it’s the least risky. QUESTION 3 If you owned AT&T stock, but were concerned about the possibility of bad news. How might you use options to protect yourself against the risk of a price decline? How might you “subsidize” some or all of the cost of protection? Comment on the risks of your chosen “subsidy” strategy. 1) If we are concerned about the possibility of bad news, to protect

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  • Pricing

    to self-select the right option for themselves, signaling their willingness to pay. As a result, this strategy not only incentivizes customers who can go to the movie on weekdays to attend lower-demanded shows, but also extracts more revenue from customers who are only able to attend popular timeslots. Example: Ticket of Interest Mon-Thu Fri Weekend and Public Holidays Before 6pm After 6pm 2D Annabelle GV Plaza $8.50 $9.50 $12.50 $12.50 c) Benefit-based Pricing i) Cinema Versioning: Currently

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  • Atlantic Computer

    Atlantic Computers: A bundle of pricing options In the case, it mentioned that, conservatively, one Tronn server equals to two Zink servers; Aggressively, one Tronn equals to four Zink servers. Within the premise that Matzer and his colleagues were quite conservative, he decided to compare two basic servers loaded with the PESA versus four basic servers. In this case, therefore, we calculate the price of Atlantic Bundle with the assumption that two Atlantic Bundles is the equivalent of four

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  • Atlantic Case Study

    ATLANTIC COMPUTER: A Bundle of Pricing Options Case# 4, Donny Hamilton June 29th, 2014 ATLANTIC COMPUTER: A Bundle of Pricing Options Case# 4, Donny Hamilton June 29th, 2014 Problem Definition: We need to develop a pricing strategy for our ‘Atlantic Bundle’ – the new Tronn Server and the PESA (Performance Enhancing Server Accelerator) software before the SME trade show.ATLANTIC COMPUTER: A Bundle of Pricing Options Case# 4, Donny Hamilton June 29th, 2014 ATLANTIC COMPUTER: A Bundle of

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  • Atlantic Computer: a Bundle of Pricing Options

    Atlantic Computer: A Bundle of Pricing Options 1. Determine the price for two Tronn servers plus PESA according to the following pricing methods: * Status-quo pricing * Competition-based pricing * Cost-plus Pricing (Hint: footnote # 5) Note: Jowers makes a conservative estimate that two Tronn servers plus PESA equals the performance of four Ontario Zink servers. To calculate the prices you could use the spreadsheet file included in the course content (Week 3). 2

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  • Atlantic Computer

    Executive Summary Atlantic Computer is computer hardware manufacturer of servers and other high tech products. Recently, there was the announcement of the development of a new server called the Tronn. This new product was specifically developed to address an emerging market in the US and would be sold with a piece of software called Performance Enhancing Server Accelerator or PESA. This software was designed to accelerate the performance of the aforementioned Tronn server and would allow this

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  • Atlantic Computer: a Bundle of Pricing Options

    Coca Cola y Pepsi tienen una ventaja competitiva sostenible; es decir, una ventaja competitiva que perdura por un espacio de tiempo significativo. Tanto para Coca Cola como para Pepsi, lo que representa una verdadera amenaza, son principalmente las acciones que pueda tomar una de ellas, las que erosionan el modelo de negocios de la competencia (Coca Cola en el caso de Pepsi y viceversa). Para luchar contra ello, una alternativa que se ve conveniente, para el caso de Coca Cola por ejemplo, es inventar

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  • Atlantic Computer

    Atlantic Computer is a manufacturer of Servers and High-tech products. Atlantic Computer, Inc. was the largest player in the overall computer industry and had been competing in the High Performance server segment with its product called Radia for 30 years capturing 20% of the market share in this segment. There are 2 market segments in the server industry with the largest segment being High Performance and Basic Servers segments. High performance Server segment is expected to demand approximately

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  • The Atlantics

    Courtney Parker Prof. Aaron Lack American Popular Music 30 March 2015 The Atlantics Last Friday night, I went to see a live band performance at The Highball, located inside the Alamo Drafthouse Cinema on South Lamar in downtown Austin, TX. The band that performed was called, “The Atlantics”. There was a man stroking the hell out of the electric piano, a man finessing the drums and bassist making it look too easy, and another man doing the boogie with the saxophone sounding like heaven to the

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  • Pricing

    Marketing 635 MARKETING ANALYTICS AND PRICING Fall 2015 MW 9:35-10:50 – WCBA 184 Instructor: Office: Office Hours: Office Phone: E-mail: Website: Dr. Yan Liu 220U Wehner Building by appointment 845-2547** yliu@mays.tamu.edu http://elearning.tamu.edu **Outside of the classroom, my preferred method of communication is via e-mail. Please note that I will often use e-mail to communicate with you class information. I will send these messages to your neo email account, so please

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  • Option Pricing, Interest Rate Risk in U.S

    Option Pricing, Interest Rate Risk in U.S Diana PĂUN & Ramona GOGONCEA (2013). Interest Rate Risk Management and the Use of Derivative Securities. Economia Seria Management. Retrieved from: <http://www.management.ase.ro/reveconomia/2013-2/4.pdf> The study by these two authors aims at demonstrating how derivative financial instruments can be utilized to prudently manage interest rate risk majorly faced by numerous banks and financial institutions as well as enable the efficient application

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  • Alabama Atlantic

    Case 4: Alabama Atlantic Executive Summary Alabama Atlantic would like to determine the optimal shipping routes for its lumber and the amount to be shipped on each route, in order to minimize the total equivalent uniform annual cost. It is my understanding that the company has three sources of wood, with annual availabilities of 15, 20, and 15 million board feet respectively. Additionally, the company has 5 markets it sells to, which have annual demands of 11, 12, 9, 10, and 8 million board

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  • Arundel Option Pricing

    10 films of these major studies in a year out of 150 released in the same year accounted for 26%  of the total US film rentals revenue. This means the substantial part of the profit for any major  studio is obtained from the popular movies. If Arundel had the option to choose to produce the  sequel movie out of all the movies released by a studio they have a contract with, they could  decide producing only the one with high return and achieve a positive NPV for this business,  provided that the studio and

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  • Second City Options: a Case Study on Index Options

    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

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  • Pricing

    SUMMER 2007 V O L . 4 8 N O. 4 Arvind Sahay How to Reap Higher Profits With Dynamic Pricing Please note that gray areas reflect artwork that has been intentionally removed. The substantive content of the article appears as originally published. REPRINT NUMBER 48415 pricing How to Reap Higher Profits With  Dynamic Pricing S un Microsystems Inc. chairman Scott McNealy forecast that “With recent advances in wireless and information technology, even our cars could

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  • A Novel Simple but Empirically Consistent Model for Stock Price and Option Pricing

    Price and Option Pricing HUADONG(HENRY) PANG∗ Quantitative Research, J.P. Morgan Chase & Co. 277 Park Ave., New York, NY, 10017 Third draft, May 16, 2009 Abstract In this paper, we propose a novel simple but empirically very consistent stochastic model for stock price dynamics and option pricing, which not only has the same analyticity as log-normal and Black-Scholes model, but can also capture and explain all the main puzzles and phenomenons arising from empirical stock and option markets which

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  • Atlantic Computer Case Study

    Team 7 Atlantic Computer2011. december 16. Atlantic Computer Case Study Group 7 Olivér Szabó Péter Hrobár Written by János Wicha 1 Team 7 Atlantic Computer2011. december 16. Recommendation: Use the value-in-use pricing method. 2. Recommended sales price for server: 5.500 USD/Unit 3. Recommended charge for PESA Harware as a Service (HaaS): 280 USD/month for 3 years contract. 4. For sales force new motivation package, 10% commission from every sold server and 5% from monthly fee/ month

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  • Computer

    Evaluate the four pricing options available to Atlantic Computer. What would be the most effective pricing strategy for Atlantic Computer? Why? Jowers has four pricing options for Atlantic Computers. He must decide to either: 1) keep the company's tradition of charging for software and providing PESA software for free, 2) charge a price equal to what the customer would pay for four Ontario Zink servers, 3) charge a price based on a cost-plus approach to pricing PESA, or 4) charge a price based on

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  • Atlantic Computer

    that particular strategy? • What are your assumptions ? • What are the consequences of your decision? • How would you implement it? Atlantic Computer: A Bundle of Pricing Options 1. Determine the price for two Tronn servers plus PESA according to the following pricing methods: • Status-quo pricing • Competition-based pricing • Cost-plus Pricing (Hint: footnote # 5) Note: Jowers makes a conservative estimate that two Tronn servers plus PESA equals the performance of four Ontario Zink

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  • Arbitrage - the Key to Pricing Options

    January 1, 2004 Federal Reserve Bank of Cleveland Arbitrage: The Key to Pricing Options by Ed Nosal and Tan Wang A rbitrage is the act of simultaneously buying and selling assets or commodities in an attempt to exploit a profitable opportunity. Although the idea behind arbitrage is fairly simple, it is quite powerful because the ability to exploit such opportunities is needed for markets to operate efficiently. Arbitrage ensures, for example, that buyers and sellers of foreign

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  • Case : Atlantic Computer

    Analisis Situasi • Atlantic Computer adalah sebuah perusahaan manufaktur komputer server terbesar dan produk lain yang berteknologi tinggi, juga memiliki pangsa pendapatan sebesar 20% di segmen server berkinerja akhir tinggi. Server yang memiliki performa tinggi, yaitu “Radia” telah dijual kepada perusahaan besar dan telah dikenal akan kualitas dan reliabilitasnya serta memiliki layanan pasca penjualan yang baik. • Oleh karena adanya perkembangan di dunia internet, permintaan akan BS (Basic

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  • Atlantic Computer

    ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS Situation Analysis Atlantic Computer is a manufacturer of servers and high-tech products. Two market segments exist in the server industry: High performance and Basic Servers. Atlantic Computers has held a 20% share of the High Performance market with their Radia servers being their premier product. However, the market for Basic servers is growing and this has caused Atlantic Computers to develop and introduce a Basic Server called the Tronn and

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  • Option Pricing

    examines the problem of pricing a European call on an asset (Stock) that has a stochastic or variable volatility. Addressing this problem was done by investigating two cases: the first case is to determine the option price when the stochastic volatility is independent of stock price. The second case is to determine the option price when the stochastic volatility is correlated with the stock price. This paper provides a solution in series form for the stochastic volatility option, in addition to a discussion

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  • Pricing

    familiarize the general public with VoIP and its capabilities and have shown early success by offering cheap and in some cases, free calling services. Vonage is one of those VoIP services that specialize to provide their customers with only VoIP options. With crafty ads and their reputation for a great product and service has risen through the ranks to become one of the best VoIP services in the industry, earning them our “Top Ten REVIEWS Bronze Award”. The main draw of Vonage is the fact they don’t

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  • Atlantic Computers

    Atlantic Computers Case Study Analysis: A Bundle of Pricing Options Margaret Bednarowicz MKT 520: Marketing Management Morris Graduate School of Management Robert Morris University Mr. William Briner January 29, 2011 Case Background Atlantic Computer is a company which specializes in high performance servers and high tech products. With its Radia server, the company is considered to be one of the most important competitors in the high performance server market

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  • Pricing

    Customers The continued assessment of prices on consumers’ part is crucial in deriving their perceived value Reference Prices Price and Perceived Quality Measuring customer value * Company This stresses on the alignment of marketing strategy with pricing strategy Price In arriving at price, the following factors were considered. * Price sensitivity of target segment: Notably within our target segment, they are not price sensitive given the differentiated product and service. * Price flexibility

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