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Liula [17]
3 years ago
6

Suppose the price of a pound of flax seed in west virginia is currently $1.00. the law of one price suggests that because the pr

ice of a pound of flax seed is $1.20 in kentucky, the price of a pound of flax seed will be ___________ in west virginia after sellers adjust their supply in both markets.
Business
1 answer:
Reptile [31]3 years ago
6 0

Answer:

It will be between $1.00 and $ 1,20

Explanation:

Solution

Given:

From the given question, the price of a flax seed in west Virginia is presently at $1.00

From the law of one price states that since the price of a pound of flax seed is $1.20 in Kentucky,

Then,

The price of a flax seed pound will be between 1.20 and 1.00

Therefore, the price of the flax seed in Kentucky as compared to that of west Virginia will be placed in between  prices of $1.20 and $1.00 after the supply by sellers in both market has been adjusted or raised.

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azamat

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A

Explanation:

The Brundtland Report defines Sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

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Farah Snack Co has earnings after taxes of $128, 750. Interest expense for the year was $20,000: preferred dividends paid were $
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Answer:

A. $0.90

Explanation:

Earning per share = (Net Income - dividends on preferred stocks)/average outstanding common shares

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Earning After Tax                                                       128750

Taxes                                                                       15000

Earning before Tax & Interest Expense               143750

Interest Expense                                                      (20000)

Earning after Interest, but before Tax                       123750

Taxes                                                                       (15000)

Earning after Taxes                                               108750

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Earning available for common stock holders       90000

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Earning per share                                                         0.9

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8 0
3 years ago
The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
lorasvet [3.4K]

This question is incomplete, the complete question is;

We will derive a two-state put option value in this problem.

Data: S₀ = 106; X = 112; 1 + r = 1.12. The two possibilities for ST are 149 and 75.

The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put

Answer: the hedge ratio of the put H = - 1/2 ≈ - 0.5

Explanation:

Given that;

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To find the Hedge ratio using the expression

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so we substitute

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H = - 37/ 74

H = - 1/2 ≈ - 0.5

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3 years ago
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