Answer:
“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.
Explanation:
An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.
If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.
Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.
Answer:
Sales Growth pricing objective
Explanation:
Since prices are being reduced then the aim will not be profitability, neither was it mentioned that it was because of competitors but it was done in the bid to meet internalsales targets.
This is an example of which pricing objective of Sales Growth:
Sales Growth’s objective is to increase sales volume. <u>It sets its price in such a way that more and more sales can be achieved.</u> It is assumed that sales growth has direct positive impact on the profits. <u>So, pricing decisions are taken in way that sales volume can be raised. Setting price, altering in price, and modifying pricing policies are targeted to improve sales.</u>
Answer:
The customer should buy more of good X.
Explanation:
Marginal utility is the additional satisfaction derived from spending an additional unit of money on a commodity.
In the scenario above, since more additional satisfaction is derived from purchasing good X than it is derived from purchasing good Y, then more of good X should be purchased, because this is clearly the commodity that offers more satisfaction.
Therefore, in order for utility to be maximized, more money should be spent on more of good X.
Answer:
1 151 million 2 97 million
3 22.785 million 4 20.37 million 5 76.63 million
