Answer: a. 2.90%
b. 2.81%
Explanation:
Nominal rate = 6%
Inflation rate = 3.1%
a. What is the approximate real rate of interest?
The approximate real rate of interest will be calculated as:
= Nominal rate - Inflation rate
= 6.0% - 3.1%
= 2.90%
b. What is the exact real rate?
Exact real rate will be calculated as:
= (nominal-inflation) / (1+inflation)
= (6.0% - 3.1%) / (1 + 3.1%)
= 2.9% / 1.031
= 2.81%
Answer:
Option A
Explanation:
Less elastic Demands means ,there will be less effect on the demand of a product if the price of product changes.
Answer:
Maximum profit = $6
Maximum loss = -$2
Explanation:
The computation of maximum profit and loss for this position is shown below:-
Maximum profit = Strike price - Purchase of stock
= $58 - $52
= $6
Maximum loss = Strike price - Purchase of stock
= $50 - $52
= - $2
Therefore for determining the maximum profit and loss for this position we simply applied the above formulas.
In this situation when the seller has filed for bankruptcy then Broker Joe has to terminate the contract. Therefore, Option B is the correct statement.
<h3>What do you mean by contract?</h3>
A legally enforceable agreement that creates, defines, and regulates mutual rights and obligations between its parties is called a contract.
An agreement usually involves the exchange of goods, services, money, or the promise to change any of these at a later date.
Therefore, Option B is the correct statement.
Learn more about contract here:
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That statement is True.
The amount of equities that you own in a corporation is depended on how much stock you own in that corporation. The more equity you own, the more influence you have in that corporation. If you have more than 50 % equity in a corporation, that corporation basically have to follow whatever decision you made.