Answer:
The correct answer is option c.
Explanation:
In a monopolistic competition the firm faces a downward sloping demand curve. There are a number of firms in the market which are producing close substitutes. So, the firm faces an elastic demand curve. Which means that the quantity demanded will fall when there is an increase in price level.
Though if people have certain degree of loyalty toward the firm's product, the consumer will prefer the product even when price increases.
So, the loyalty towards brand will make the demand curve less elastic.
Answer:
53.19
Explanation:
$64 per share
Implied volatility = 40.0
risk-free rate of interest = 5.5%
number of shares shorted ( N ) = 100
strike price = 69
with maturity = 9 months
<u>Calculate number of shares of stocks you have to be buy(sell) to create a delta-neutral hedge</u>
we will apply the Black Scholes Formula
= N [ (ln(64/69) + (5.5%+(40%)^2 / 2) * (9/12)) / (40%* √(9/12)) ]
= N [ (ln(64/69) + (0.055+(0.40)^2 / 2) * (9/12)) / (0.40* √(9/12)) ]
= N * 0.5319
Number of shares to create a delta neutral hedge = 100 * 0.5319 = 53.19
Answer:
The answer is A. True.
Explanation:
Marginal Cost is the cost of producing one more product unit.
Marginal Cost = Average Total Cost / Average Goods Output
Therefore, in the short run, an increase in Marginal Cost implies a similar increase in Average Total Cost.
Foreign saving is used for domestic investment when
foreigners engage in either foreign direct investment or foreign portfolio
investment.
<span>To add, ‘Foreign savings’ and the ‘net external
resources inflows’ are the two popular acronyms used for the current account
deficit in the balance of payments.</span>
Answer:TRUE
Explanation:The arguments presented in the question is an argument which has to do with the unproven assumptions. Before making such an argument one must effectively provide a proof and ensure the argument is based on facts that are valid,if not based on valid facts it will be misleading or confusing the general public or decision makers when making certain decisions. Normative judgements are judgements of conditions or situations that are known to be normal,but in the case of the question it has not been proven.
