a - Suppose that the stock price is $29, the risk- interest rate is 10% per year, the price of a 4-month European call option is $2.75, and the price of a 4-month European put option is $2.25. Both options have the strike price $28. Describe an arbitrage strategy and justify it with appropriate calculations. Please write your solution in complete sentences. B- Use the same data as in part (a), but suppose now that the call price is $3.25 and the put price is $1. Is there still an arbitrage opportunity? Describe an appropriate strategy and justify it with appropriate calculations. Please write your solution in complete sentences

Which of the following best explains cost-push inflation? a. increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. b. consumers demand goods faster than they can be supplied, increasing competition among buyers. c. rising prices for goods and services reduce spending power and cut into consumer demand. d. wages drop so that workers have to spend a higher percentage of income on the cost of necessities.2b2t

Which statement about the cost of the options is true? she would save $1,000 by choosing option b. she would save $5,650 by choosing option a. she would save $11,200 by choosing option b. she would save $11,300 by choosing option a.

Need with my trade theory homework. i doubt what i wrote was right.consider a monopolistically competitive market for soft drinks in which n symmetric firms face the following demand function: q=s(1/n-b(p-(p with the straight line on which implies the marginal revenue functionmr=p-(q/sb)finally, suppose firms face the total cost functiontc=900,000+100qsuppose the market size, s, is 27,000,000, and the elasticity parameter b is 0.003.diagram the price and the average total cost in the market as a function of the number of firms. what are the equations for each curve, and why does each curve slope up or down? label the equilibrium number of firms and the equilibrium price in the diagram. why is this the equilibrium?