Answer:
14 contracts should be used in hedging.
Explanation:
The heating oil price is 0.93
The volatility of heating oil price is 0.03,
The volatility of jet fuel oil price is 0.02
Determining Minimum variance ratio
0.93×0.02/0.03 = 0.62
Each heating oil futures contract trade is 42,000 gallons of heating
ThereforeThe optimal number of contract is :
O.62×1,000,000/ 42,000 = 14.76
Converting 14.65 to nearest whole number will give us 14
Answer:
1.3
Explanation:
Given:
If Good C increases in price by 30% a pound.
This causes the quantity demanded for Good D to increase by 40%.
Question asked:
What is the cross-price elasticity of the two goods ?
Solution:
We can find the cross-price elasticity of the two goods by this formula:
When Good C increases in price by 30% which causes the quantity demanded for Good D to increase by 40%, then the cross-price elasticity of the is Good C and Good D is 1.3.
Taxpayers who recover all or part of an item that they deducted or took a credit for in a prior year, must report the same amount as taxable income.taxable income refers to the<span> gross </span>income<span> or adjusted gross </span>income. It <span>is minus any deductions or exemptions allowed in that tax year. This </span>income<span> includes wages, salaries, bonuses and tips, as well as investment </span>income<span> and unearned </span><span>income.</span>
Answer:
1. Concept/Idea generation
2. Commercialization
Explanation:
The whole concept of idea generation is basically hinged on identifying and/or spotting a particular problem. The task here is how an apt individual will suggest solutions to the identified problem, while having in mind that people will pay for such. Thus, to be effective at this, individual must operate at an impressive level of product solving skills activities. Problem solving involves combination of critical thinking and evaluation tools and could take considerable timing and resources where necessary.
Commercialization is the procedure an entity undertake to market and/or sell a product to earn a price and ultimately profit. This represents the final phase of a development process. It also involves the combination of critical tools to ensure a successful outing. Various marketing mix /strategies could be adopted here. A critical appraisal could also be noted in a bid to detail the whole performance of the product in subsequent undertakings.