subject
Business, 21.08.2020 03:01 jennmcd17

For this problem, assume that at this moment, S = $99, r = 0.02, C100(99, T βˆ’ 1/2) βˆ’ P100(99, T βˆ’ 1/2) = $8, and T = t + 1/2 year. (a) Are there any arbitrage opportunities? If so, explain how to tackle this opportunity and determine how much money can be made.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 09:40
Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.
Answers: 1
question
Business, 22.06.2019 09:50
Acar manufacturer uses new machines that automatically assemble an engine from parts fed to the system. the machine can regulate the speed ofassembly depending on the number of parts produced. which type of technology does this machine use? angenoem mense wat ons in matin en esta va ser elthe machine uses
Answers: 3
question
Business, 22.06.2019 12:30
Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?
Answers: 3
question
Business, 22.06.2019 21:00
Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?
Answers: 1
You know the right answer?
For this problem, assume that at this moment, S = $99, r = 0.02, C100(99, T βˆ’ 1/2) βˆ’ P100(99, T βˆ’ 1/...
Questions
question
Mathematics, 17.12.2020 09:50
question
Mathematics, 17.12.2020 09:50
question
Mathematics, 17.12.2020 09:50
question
Mathematics, 17.12.2020 09:50
question
Mathematics, 17.12.2020 09:50