Microsoft® Excel Data Analysis and Business Modeling

Chapter 12. IF Statements

• If I order up to 500 units of a product, I pay $3.00 per unit. If I order between 501 and 1200 units, I pay $2.70 per unit. If I order between 1201 and 2000 units, I pay $2.30 per unit. If I order more than 2000 units, I pay $2.00 per unit. How can I write a formula that expresses the purchase cost as a function of the number of units purchased?

• I’ve just purchased 100 shares of stock at a cost of $55 per share. To hedge the risk that the stock might decline in value, I purchased 60 six-month European put options. Each option has an exercise price of $45 and costs $5. How can I develop a spreadsheet that indicates the six-month percentage return on my portfolio for a variety of possible future prices?

• Many stock market ...