Answer:
Explanation:
To answer this question, we first need to calculate the marginal utility per dollar for doughnuts. Recall that the marginal utility per dollar for a good is the marginal utility divided by the price of the good (=MU/P). For the first doughnut we have 10 (=10/$1), the second doughnut 9(=9/$1), third 9, fourth 8, fifth 7, sixth 6, seventh 5, eighth 4, ninth 3, tenth 2 and eleventh 1. The marginal utility per dollar for every cup of coffee is 5.5 (=5.5/$1). To determine how big the budget would have to be before Omar would spend a dollar buying his first cup of coffee, we compare the marginal utility per dollar values. Omar will purchase the first doughnut before he buys a cup of coffee because the marginal utility per dollar for the doughnut is greater than the marginal utility per dollar for the cup of coffee (10>1.5). The same is true for the second through the eighth doughnut. This implies Omar will buy 8 doughnuts at the price of $1 before he buys his first cup of coffee. Therefore his budget will need to $9 before he buys his first cup of coffee, $8 on the doughnuts and $1 for the cup of coffee.
Answer: $8
Answer: Net loss = $2
Explanation:
Given that,
Purchase one IBM July 120 put contract for a premium of $5
IBM stock is at $123 per share on the market
In buying these kind of call option, a person can makes the profit if the future price of the share is greater than the strike price.
Here,
Profit = $123 - $120 = $3
But, we have to deduct the premium paid that is $5
Therefore,
Net loss = Profit - premium paid
= 3 - 5
=$2 ⇒ This much loss realize on a the investment.
Answer:
Psychological barrier
Explanation:
The type of barrier that you are experiencing is psychological. Psychological barriers result when your personal values are not aligned with the message being received, be it by cultural or ethical values or even by preconceived thoughts. In this situation, since you do not agree with the task at hand of changing the method for keeping the accounts, you find it difficult to focus on the task.
<span>Payment for the use of a copyrighted work is called a tax
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Solution :
Given :
Coupon rate for Bond J = 3%
Coupon rate for Bond K = 9%
YTM = 6 %
Therefore,
The current price for Bond J = $ 718.54 =PV(6%/2,13x2,30/2,1000)x -1
The current price for Bond K = $ 1281.46 =PV(6%/2,13x2,90/2,1000)x -1
If the interest rate by 2%,
Bond J = $ 583.42 = -18.80% (change in bond price)
Bond K = $ 1083.32 = -15.46% (change in bond price)
