hich of the following situations will disqualify a single individual from claiming the Premium Tax Credit? A. Marriage to an ind
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Answer:
Explanation:
The time (T) = 6 months = 6/12 years = 0.5 years
Interest rate (r) = 6% = 0.06
The stock is priced [S(0)] = $36.50
The price the stock sells at 6 months () = $3.20
European call (K) = $35
The price (P) is given by:
The price of a 6-month, $35.00 strike put option is $1.65
Answer:
a. If demand increases and supply is constant, there would be a rightward shift of the demand curve. As a result, equilibrium price and quantity would increase
b. An increase in supply would lead to a rightward shift of the supply curve. As a result price decreases and quantity increases. A decrease in demand would lead to a leftward shift of the demand curve. As a result, quantity and price decreases. Taking these two effects together, equilibrium price decreases and there is an indeterminate effect on equilibrium quantity
c. An increase in demand leads to a rightward shift of the demand curve. As a result, equilibrium price and quantity increases. A decrease in supply would lead to a leftward shift of the supply curve. This leads to a decrease in quantity and an increase in price. Taking these two effect together, there would be an increase in equilibrium price and an indeterminate effect on equilibrium quantity
d. A decrease in demand would lead to a leftward shift of the demand curve. As a result, quantity and price decreases. A decrease in supply would lead to a leftward shift of the supply curve. This leads to a decrease in quantity and an increase in price. Taking these two effect together, there would be a decrease in equilibrium quantity and an indeterminate effect on equilibrium price
Explanation:
Please check the attached images for the demand and supply diagrams
