Consider the cellular network market. What type of market would this fall under (price taker, price searcher, etc.)? Does this type of market necessarily mean that consumers are worse off (either pay more or are subject to low quality products)? Explain.

YBM’s stock price S is $102 today. — After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. — Options mature after T = 6 months and have an exercise price of K = $105. — The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, suppose that a trader quotes a put price of $5. Then the arbitrage profit that you can make today by trading this call and related securities is:

Group of answer choices

$0.33

$0.59

$1.54

$0

please provide explanation

YBM’s stock price S is $102 today. — After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. — Options mature after T = 6 months and have an exercise price of K = $105. — The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, the hedge ratio and the put option’s value are given by:

Group of answer choices

0.5190 for the hedge ratio and $5.59 for the put option’s value

-0.5190 for the hedge ratio and $5.59 for the put option’s value

0.2523 for the hedge ratio and $4.81 for the put option’s value

-0.2523 for the hedge ratio and $2.35 for the put option’s value

please provide explanation

YBM’s stock price S is $102 today. — After six months, the stock price can either go up to $115.63212672, or go down to $93.52995844. — Options mature after T = 6 months and have an exercise price of K = $105. — The continuously compounded risk-free interest rate r is 5 percent per year. Given the above data, suppose that a trader quotes a call price of $6. Then the arbitrage profit that you can make today by trading this call and related securities is:

Group of answer choices

$1.22

$0.81

$0

$0.25

please provide explantion

Please type answer The Consumer Price Index (CPI) is just one price index that we use to measure inflation. The CPI was 33.4 in 1967 and 160.5 in 1997. Dividing 160.5 by 33.4 yields a factor of 4.8, so if Dr. Evil thought that one million dollars was a lot of money in 1967, an equivalent amount in 1997 would be $4.8 million. Imagine if you were cryogenically frozen in the 1960s and revived 30 years later. Changes in societal behavior, advances in technology, and even higher prices would all come as a shock to you! Find the price of a product in the past. You can search various websites for historical prices of popular products. One possibility is Historic Food Prices. Use the following Bureau of Labor Statistics table, which shows all the annual average CPIs for all years since 1913, to convert the price of the product you chose to the most recent dollar amount, as we did with Dr. Evil’s $1 million. Make sure you also address the following questions: a) How does inflation affect our economy and the people in it? Who does it hit the hardest? How can you protect yourself against inflation? Please type answer

Twinkies- Primary product

Pop tarts- Competitor product

1.        Comment on the differences in cost between the two competitors, and assert the reason for this difference (e.g., does the company compete on cost or differentiation?)

2.        Apply the concept of the value chain to this product. What types of costs would be relevant for each segment of the value chain for this product?

3.        Research a single critical ingredient of your snack and its source. Do you expect significant increases in the cost of this ingredient over the next year? Support your response with input from the commodities market or other economic data.

Price Elasticity In your own words explain price elasticity. Focus on explaining the difference between products that have elastic demand and those that have inelastic demand. What types of products typically have inelastic demand? Why? What types of products typically have elastic demand? Why? For the following products indicate if your demand for the product is elastic or inelastic and why. Having a car Home cable/internet service (all service providers have doubled their prices – elastic or inelastic?) College courses (all schools have doubled their prices – elastic or inelastic?) Cell phone service (all service providers have doubled their prices – elastic or inelastic?

Demand Elasticity: 66%

Price Elasticity: -11%

Using the price elasticity of demand above, if Starbucks decreases its price by 10 percent, what would happen to the quantity demanded for Starbucks coffee?

QUESTION 5

1. Which of the following statements is true about price ceilings?

   		price ceilings create surpluses for goods but shortages for services.
   		Price ceilings cause goods to be rationed by some other means than legally determined market prices.
   		Ration coupons are the only way to ration goods when price ceilings are in place.
   		All of the other statements are correct.

QUESTION 6

1. Which of the following statements is correct?

   		Frictional unemployment is the result of friction between labor and management over how best to perform work.
   		Structural unemployment is unemployment resulting from changes in the structure of consumer demand or technology.
   		Cyclical unemployment is also called wait unemployment because this unemployment depends on the timing of the business cycle.
   		Search unemployment is the broadest unemployment category because it covers all other types of unemployment.

QUESTION 7

1. The economic performance in the Great Recession of 2007–2009 clearly illustrated the relationship that if interest rates fall, then investment spending will increase.

   True

   False

QUESTION 8

1. The law of demand states that if price increases, other things being equal, the demand for the product will decrease.

   True

   False

6. What is an asset price bubble? Should central banks burst asset price bubbles or wait until they burst and mop-up afterwards? Is there an alternative to using conventional monetary policy? [50 marks]