Suppose that the spot price of oil is us$95 and the quoted 1-year futures price of oil is us$125. note that a quote is the last price at which a security or a commodity traded, that is, the most recent price on which a buyer or a seller agreed and at which some amount of the asset was transacted. therefore, bid and ask quotes are the most current prices at which the security or the commodity can be bought or sold. for this exercise just assume that bid=ask=quote.

assume also that the risk-free interest rate is 5% per annum with discrete compoundingfor all maturities. moreover, the storage cost of oil are 2% per annum and based on the spot price. show that there is an arbitrage opportunity and the profit of this arbitrage is equal to $23.35. for full credit you must show all the steps, explain the strategy you would put into practice to take advantage of this arbitrage opportunity and explain what is the source of the arbitrage gain. this exercise was done and discussed in lecture class.

The market price of cheeseburgers in a college town increased recently, and the students in an economics class are debating the cause of the price increase. some students suggest that the price increased because the price of beef, an important ingredient for making cheeseburgers, has increased. other students attribute the increase in the price of cheeseburgers to a recent increase in college student enrollment.1. the first group of students thinks the increase in the price of cheeseburgers is due to the fact that the price of beef, an important ingredient for making cheeseburgers, has increased. (what happened to demand and supply, shift to the right or left)2. the second group of students attributes the increase in the price of cheeseburgers to the increase in college student enrollment. (what happens to demand and supply, shift to the right or left)3. suppose that both of the events you analyzed above are partly responsible for the increase in the price of cheeseburgers. based on your analysis of the explanations offered by the two groups of students, how would you figure out which of the possible causes was the dominant cause of the increase in the price of cheeseburgers? (choose a, b,c, or d)a)if the price increase was small, then the supply shift in the market for cheeseburgers must have been larger than the demand shift.b)if the equilibrium quantity of cheeseburgers decreases, then the demand shift in the market for cheeseburgers must have been larger than the supply shift.c)if the equilibrium quantity of cheeseburgers decreases, then the supply shift in the market for cheeseburgers must have been larger than the demand shift.d)whichever change occurred first must have been the primary cause of the change in the price of cheeseburgers.

Josie just bought her first fish tank a 36 -gallon glass aquarium, which she’s been saving up for almost a year to buy. for josie, the fish tank is most likely what type of purchase

Select the correct answer. which is a benefit of planning for your future career? a.being less prepared after high school. b.having higher tuition in college. c.earning college credits in high school. d.ruining your chances of having a successful career.