Questions
You manage a cable company that offers 2 channels - NBC and Fox. You face 2...

You manage a cable company that offers 2 channels - NBC and Fox. You face 2 types of customers (type A and type B) and there are 100 customers of each type. Their respective values for each channel are:

Type A Type B
NBC $10 $15
Fox $3 $7

Suppose that you sell each channel separately. You should set a price of $_____ for NBC and a price of $______ for Fox.

In: Economics

A trader at the Kewar Stock Exchange took a SHORT POSITION in 100 shares of the...

A trader at the Kewar Stock Exchange took a SHORT POSITION in 100 shares of the Mitha kora at Tk.46.00 per share. The initial margin requirement was 40 percent while the maintenance margin is 30 percent of current market price. Determine the initial margin, maintenance margin, and the amount of replenishment if the price of Pyera stock changes to (a) Tk.38.00, (b) Tk.48.00, and © Tk.52.00.

In: Finance

A report announced that the median sales price of new houses sold one year was ​$231,000​,...

A report announced that the median sales price of new houses sold one year was ​$231,000​, and the mean sales price was ​$274,200. Assume that the standard deviation of the prices is ​$90,000. Complete parts​ (a) through​ (d) below. f you select a random sample of n=100​, what is the probability that the sample mean will be between ​$275,000 and ​$295,000​? The probability that the sample mean will be be between ​$275, 000 and ​$295,000 is what?

In: Statistics and Probability

An investor takes long position in five August Gold futures contract. Each contract size is 100...

An investor takes long position in five August Gold futures contract. Each contract size is 100 troy ounces. Futures price is $1356.20. Initial margin requirement is $3,500 per contract and the maintenance margin is $2,500 per contract. Find out at what price the margin call will take place? After the margin call, how much the investor will have to deposit in the margin account?

In: Finance

The price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face...

The price of a zero-coupon bond (ZCB) that matures at time t=10 and that has face value 100 is $61.62

An n = 10 binomial model lattice model has the following parameters: r0,0 = 5% u = 1.1 d = 0.9 q = 1 - q = ½

Compute the price of an American call option on the above ZCB. The option has expiration t = 6 and strike = 80.

In: Finance

Suppose the price of notebooks rises from $2 to $3 and the quantity demanded falls from...

  1. Suppose the price of notebooks rises from $2 to $3 and the quantity demanded falls from 100 to 60. What is the change in total revenue for the firms producing notebooks? How can your answer to this help determine whether the demand for notebooks is elastic or inelastic?
  2. As more time passes, the price elasticity of supply becomes more _______________ and                                                                                                  (elastic/inelastic)
  3. the supply curve becomes _______________.

                                              (steeper/flatter)

In: Economics

a- Preferred stock with a face value of $100 has a stated dividend of 2.5%. Indicate the amount of preferred dividends that the company must pay each year.

 

a- Preferred stock with a face value of $100 has a stated dividend of 2.5%. Indicate the amount of preferred dividends that the company must pay each year.

b- Non-cumulative preferred stock with a face value of $100 million has a stated dividend of 3.1%. Dividends were not paid last year. The company intends to pay dividends of $8 million this year. Calculate the amount of the common dividend.

c- Cumulative preferred stock with a face value of $100 million has a stated dividend of 3.1%. Dividends were not paid last year. The company intends to pay dividends of $8 million this year. Calculate the amount of the common dividend.

d- You believe that soybeans will decrease in price. As a speculator, indicate if you would buy or sell a futures contract.

e- You believe that light sweet crude oil will increase in price. As a speculator, indicate if you would buy or sell a put option or a call option.

f- You are a seller of soybeans and are concerned that it might decrease in price. To protect yourself, indicate if you would you buy a put option or a call option

g- You buy a soybean meal futures contract for 5,000 bushels at $10.21/bushel. Calculate the gain or (loss) if the price increases to $10.27.

h- You buy a call option for 1,000 barrels of light sweet crude oil at $40/barrel. The cost of the option is $0.04/barrel. Calculate the total net gain or (loss) if the price increases to $42/barrel.

i- You buy a put option for 5,000 bushels of soybeans at $10.15/bushel. The cost of the option is $0.53/bushel. Calculate the total net gain or (loss) if the price decreases to $10.10/bushel

j- You sell a put option for 5,000 bushels of soybeans at $10.15/bushel. The cost of the option is $0.53/bushel. Calculate the total net gain or (loss) if the price increases to $10.20/bushel

In: Finance

When the price is $30 per unit, buyers in a market are willing to buy 400...

When the price is $30 per unit, buyers in a market are willing to buy 400 gadgets and when the price is $60 per unit, they are only willing to buy 100 gadgets. When the price is $30 per unit, sellers in a market are only willing to sell 150 gadgets and when the price is $60 per unit, they are willing to sell 225 gadgets. Assume (1) the economic environment of buyers (their income, tastes or preferences, other prices, and expectations) and sellers (technology, input prices, etc.) are constant and (2) the demand and supply curves are linear all along. What is the inverse supply equation in this market?

In: Economics

Stephanie is planning a cruise to the Caribbeans and has a budget for new evening wear...

Stephanie is planning a cruise to the Caribbeans and has a budget for new evening wear of $500. She plans to purchase new shoes and dresses. The average price for a pair of shoes is $50 while the average price for an evening dress is $100. Her current budget constraint is pictured in the graph. Stephanie catches an end of season sale on dresses and the average price of dresses falls to $50. As a result:

A. The opportunity cost of each individual dress increases as a result of the price reduction.

B. Stephanie's new budget constraint will be flatter.

C. Stephanie will be able to afford more dresses for a given number of shoes.

In: Economics

which of the following is true a) if the market price >ATC , The firm incurs...

which of the following is true

a) if the market price >ATC , The firm incurs loss

b) if the market price >ATC , The firm makes profit

c) if the market price >ATC , The firm ihas zero ecomonic profit

d) if the market price >ATC , The firm must shut down

2) refer to the bellow what is the average cost of the 3 hours of labors

hours of labor total product marginal product
0
1 220 220
2 370
3 540 170
4 650 100
5 50

1)60

2)80

3)180

4)540

In: Economics