Word problems for future hedge fund managers

posted on the 'Everyone's Cup of Tea' blog –

http://jowlindsay.blogspot.com/2008/05/from-word-p...

from "word problems for future hedge fund managers"

By Bob Woodiwis.

Elementary(AGES 5–10)

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2. On his way home from school, Kyle stops to buy a candy bar. It costs 69 cents. How much change should Kyle get back if he pays for the candy with a $1,000,000,000 bill?

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Intermediate(AGES 11–15)

1. Your middle-class parents have a combined household income of $115,000. You receive an allowance of $20 per week. If you save all your allowance for two years, how much debt will you have to finance to hostilely take over your family? How will you structure the debt?

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Advanced(AGES 16–18)

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3. Your mother gives you x dollars to put gas in the family car. Your father gives you y dollars to get a haircut. You lose x + y dollars betting against your high school's undefeated football team. Explain to your familial investors how "that's life."

4. Days before the housing bubble bursts, you short the ABX subprime index and, when the ensuing mortgage crisis causes millions of families to lose their homes to foreclosure, you realize a $550 million profit.

Since, for you, this is the opposite of a problem, find the opposite of an answer.