Answer:
$10 profit
Explanation:
In this question, we are asked to calculate the profit or loss to a short position.
Firstly, we identify that the spot price of market index is $900.
Now, a three months forward contract equals a value of $930.
Raising the index to $920 at the expiry date is obviously a profit to the short position.
To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.
Mathematically, this is equal to $930-$920 = $10 profit
Answer: b. A Strategic Alliance
Explanation:
A Strategic Alliance refers to two or more entities agreeing to work together and involves them sharing their resources, knowledge, and capabilities to develop a superior product or other objectives that might not be tangible.
The Companies will remain independent while this is done.
The relationship between Vibgyor and the software company can therefore best be referred to as a Strategic Alliance.
Answer: Option (B) is correct.
Explanation:
Correct option: product differentiation.
In a monopolistic competitive market, there are large number of sellers which are producing similar products or close substitute but the products are different enough that the demand curve for each firm is downward sloping.
The firms in a monopolistic competitive market have zero economic profit in the long run because of the less restrictions on the entry and exit of the firms.
