Answer :
Given price of trout =$2
Price of salmon=$10
OC = price of salmon/price of trout = 10/2=5 pound of Trout
Relative price of salmon=10/2=$5
Price of trout (X) per pound is $2. Price of salmon (Y) per pound is $10....
2. The three-month futures price for the British pound is $1.3160/£. You expect the spot price three months from today to be $1.3680/£. The British pound contract size is £62,500. a. If you decide to buy 68 British pound futures contracts, how much money do you need today as your initial investment other than the margin you need to post? b. If you have available $1.4 million to speculate in the futures market as a buyer, how many contracts can...
The following graph shows the market for Oregon salmon. Suppose the state of Oregon limits the salmon harvest to 400 million pounds per year in Oregon waters in order to prevent over-fishing. The state issues 2,000 fishing licenses that allow each license holder to harvest 200,000 pounds of salmon per year PRICE (Dollars per pound) 20 Quota 18 16 14 12 10 Demand 1000 200 400 600 800 QUANTITY (Millions of pounds per yearl Use the graph to fill in...
You bought British pound call option at a premium of $0.11 per unit. The exercise price is $1.73. In three months (right before your option expires), you can buy British pounds for $1.73 per unit in the spot market. What will be your net profit? OA.-50.11 . B. $0 OC. $0.09 OD. $0.20
You bought British pound call option at a premium of $0.11 per unit. The exercise price is $1.73. In three months (right before your option expires), you can buy British pounds for $1.93 per unit in the spot market. What will be your net profit? OA $0.11 OB. $0 OC. $0.09 D. $0.20 Reset Selection
You bought British pound put option at a premium of $0.07 per unit. The exercise price is $1.73. In three months (right before the option expires), one can buy British pounds for $1.53 per unit in the spot market. What will be your net profit? OA. -$0.07 OB. $0 OC. 50.13 . D. $0.20 Reset Selection
You bought British pound put option at a premium of $0.07 per unit. The exercise price is $1.73. In three months (right before the option expires), one can buy British pounds for $1.93 per unit in the spot market. What will be your net profit? A.-30.07 OB. 50 OC $0.13 OD. 50.20 Reset Selection
1. 1/2+ 1/5 2. 2/5 x 1/6 3. How much would you pay for 3.5 pounds of apples at a price of $1.25 per pound? 4. Convert 2.5 miles to yards 5. You can fill a 15 gallon tank of gas for $33.25 or buy gas for $2.75/gal. Which is the better deal? Aspid Fal - Save this A * d d AaBb A AaB AC ACID. IN NI- 7. How much would you pay for 3.5 pounds of apples...
2. You are given the following information. The current dollar-pound exchange rate is $2 per pound. A U.S. basket that costs S100 would cost $120 in the United Kingdom. For the next year, the Fed is predicted to keep U.S. inflation at 2% and the Bank of England is predicted to keep UK. inflation at 3%. The speed of convergence to absolute PPP is 15% per year. A. What is the expected U.S. minus U.K. inflation differential for the coming...
Marta consumes only goods X and Y and faces the following utility function: U=7 X+4 Y. The marginal utility for X is MUX=7 and the marginal utility for Y is MUY=4 . The price of X is $10 and the price of Y is $50. Marta has an initial budget of $200. How many of X and Y will Marta buy given her utility function, her budget, and the prices? X= Y= Suppose that the government places a restriction on X...
The Shum Company makes a product, Z, from two materials: X and Y. The standard prices and quantities are as follows $5.0 $8 13.07 Price per pound Pounds per unit of product Z In May. 15,000 units of Z were produced by Shum Company, with the following actual prices and quantities of materials used Price per pound Pounds used 12.70 15.40 209,000 128000 What is the total direct materials mix variance for May? (Do not round intermediate calculations.) O $130,650...