Answer:
I use coffee daily. The supply for the coffee I bought (Colombian Coffee) is few then the price is expensive. As the price is expensive I can only buy 2 pounds of this item per month. My demand is affected for the price that producers set to this coffee. I would like to buy more but then the supply of this product is limited therefore the prices will always be high.
Answer:
True
Explanation:
STRIPS are zero coupon bonds, and the advantage of them is that they allow an investor to know exactly how much money they will receive at a future date.
The investor purchases the STRIPS at a discount value, which we are not told here. E.g. assuming that the discount rate is 5% (similar to (4), the price of the STRIPS = $50,000 / (1 + 5%)⁶ = $37,311.
Answer:
Check the explanation below
Explanation:
Inflation is systematic (Market) risk, it impacts all stocks
Results of company is unsystematic (Specific) risk, as they are as expected stock price wont have much impact
Economic growth is systematic (Market) risk, as it is inline with forecasts stock prices will be constant
Directors death is unsystematic (Specific) risk, stock price will go down
Taxation is systematic (Market) risk, as it is discussed from 6 month, stock price wont have much impact currently
If the company enters into an agreement with a winery in Spain to purchase all the red wine the winery produces, this would be a: output contract
<h3><u>
Explanation:</u></h3>
An output contract is an arbitration where one party consents to acquire the complete product that the other party accumulates. Thus, the consumer will obtain all the 'output' the trader executes.
Output contracts can be valuable to consumers when there is conjecture about market supply or demand for a distinct good. Output contracts attend the sale of goods, these sorts of contracts are directed by the Uniform Commercial Code. In the fact of output contracts, the U.C.C. claims that both parties to the contract act in real faith.
