If there was a 100 units decrease at every price level, the new equilibrium price would be<u> $2.00.</u>
<h3>Equilibrium Price </h3>
- Price where quantity demanded is equal to quantity supplied.
<h3>What is the New Equilibrium price?</h3>
Reducing by 100 units, all the quantity demanded units will lead to the following new units:
- $10 - 100
- $8 - 140
- $6 - 270
- $4 - 290
- $2 - 310
We can see that at $2, both the demand and supply are at 310 units which makes this the new equilibrium.
Find out more on the equilibrium price at brainly.com/question/14203212.
Answer:
Call payoff = Max [0, Stock price - Strike price]
Call payoff = Max[0,25-20]
Call payoff = 5
Put payoff = Max[0, strike price - stock price]
Put payoff = max[0,20-25]
Put payoff = 0
Strike price = K = 20
Stock price = S = 25
interest rate = 10% = 0.1
Time to expiry = T = 3 months = 3/12 = 0.25
Put call parity: C + K*Exp(-r*T) = P + S
C = P + S - K*Exp(-r*T)
Call = 3 + 25 - 20*exp(-0.1*0.25)
Call = 28 - 19.5062 =
Call = 8.4938 > 3
So, yes there is an arbitrage
. Implied value is 8.4938 but trades at 3.00; Call option is trading cheap hence we should buy more call options.
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- Small businesses will also participate and volunteer their time at fairs and festivals, working to connect with members of the community while sharing their services to a large audience.
When a nation's currency appreciates that means there is an increase in the exchange rate. It would result to cheaper imports and lower inflation rates which would be advantageous to those countries who are importing goods. While a weak currency would be better for an economy that's exporting goods to other countries.
Answer:
5
Explanation:
Given that,
Beginning assets = $80,000
Ending asset = $120,000
Operating income = $200,000
Interest expense = $18,000
Average common stockholders’ equity = $20,000
Average total assets:
= (Beginning assets + ending asset) ÷ 2
= ($80,000 + $120,000) ÷ 2
= $100,000
Leverage ratio:
= Average total assets ÷ Average common stockholders' equity
= $100,000 ÷ $20,000
= 5
