Suppose today is November 15. Today (Nov 15), a US firm is planning to import Mexican caviar worth Pesos 2 million due on December 15 (one month later). The firm decides to hedge its payables position by using December peso futures. The spot rate on Nov 15 is US$ 0.0630 / peso and the December futures price on Nov 15 is at $0.0665 per peso. One month late on December 15, the spot rate is $0.0570 / peso while the December futures price is $0.0615 / peso. Assume contract size is 2 million pesos. What is the gain or loss from the futures hedge: a. Loss of $10,000 b. Gain of $10,000 c. Loss of $9,000 d. Gain of $12,000

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.