Advise what the Price Elasticity of Supply is. The price elasticity of supply is either zero or a positive number. TRUE or FALSE? Please Explain. A zero price elasticity of supply means that the quantity supplied will not vary as the price varies. TRUE or FALSE? Please Explain. A positive price elasticity of supply means that as the price of an item rises, the quantity supplied rises. TRUE or FALSE? Please Explain.

Compare and contrast the price elasticity of supply and price elasticity of demand, and define income elasticity and how it distinguishes normal and inferior goods.

the arizona stock exchange lists a bid price of 1.21 and ask price of 1.40 for company z . what what price can you buy the stock and what is the dealer bid ask spread?

a. 1.40 and bis ask spread is 0.18.

b. 1.40 and bid -ask price spread is 0.19

c. 1.21 and bid- ask price spread is 0.18

d. 1.21 and bid ask price spread is 0.19

A call on a stock with stock price $25.93 has a strike price $22 and expiration 230 days from today, available for a premium of $7. The stock also has a put with the same strike price and expiration as the above call, available for a put premium of $3.56. Both options are European, there are no dividends paid on the stock, and the interest rate for the expiration period is 8% per year. How much could you make per arbitrage portfolio

Analyze the stock price of the Amazon common stock. What is the current stock price? Is it currently overpriced or underpriced according to the CAPM model and the dividend growth model?). Please give a recommendation about whether to invest in Amazon or not based on the results and current situation.

You buy a put with a strike price of $40. Current price is $37.82, has a u of 1.21 and a d of .82. The risk free rate is 1% per period. Use a time period binomial model. if price goes down, what is your holding period return?

Simmons Company is considering the purchase price of a new floor machine.

The purchase price of the equipment is $420,000 and it is expected to have a useful life of 7 years with no salvage value.

The company uses straight line depreciation and pays income taxes at a rate of 25%.

If the company requires that all new equipment investments pay for themselves within 3 years, how much annual cash operating savings must the floor machine generate, if it is to be bought.

Please show the steps in detail. I really want to learn the entire process here.

Thank you!

Suppose the futures price is $2.00, and spot price is $1.90. The interest rate is 3%, and cost of the storage is 1%. The future contract matures in 9 months. Calculate the convenience yield. Explain the possible reasons behind the calculated convenience yield.

Current stock price is 27 while a call option is available with a strike price of 20 and at a price of 3.77. A 1:2 Hedge is formed. If after a certain time, stock price declines to 15.5, Net Profit (Loss) of the trader is ________. In contrast, if stock price increases to 26, net profit (loss) will be ________. At price stock price ________ and _______, net payoff will be zero.

Price gouging is a phenomenon that occurs when a seller increases the price of goods, services or commodities to a level much higher than is considered reasonable or fair, for example, during a natural disaster.

Should there be laws against price gouging? Why or why not?