Answer:
2.43 %
Explanation :
Real Interest rate = (1 + nominal rate) / (1 + inflation rate) - 1
therefore,
Real Interest rate = 1.052 / 1.027 - 1
= 2.43 %
the approximate real rate of interest is 2.43 %
Answer:
false
Explanation:
The United States government do make some monies available to individuals or organisation in the form of grants, for the achievement of set purposes or goals. Not everyone or organisation can be eligible for all the available grants at any time. People are expected to look through various application processes to know if they are legally eligible to apply for any grant in order to avoid wasting their time and money during application.
Answer:
Explanation:
U(C, L) = (C – 100) × (L – 40)
(a) C = (w - t)[110 - L] + 320
C = 10[110 - L] + 320
C + 10L = 1420
where,
C- consumption
w - wages
t - taxes
L - Leisure
(b) Given that,
L = 100 then,
C = 420
= 5.33
(c) L = 110
C = 320
Reservation wage:
= 3.14
(d) At optimal level,
C - 100 = 10L - 400
C - 10L = -300
C = 10L - 300
Using budget constraint:
C + 10L = 1420
10L - 300 + 10L = 1420
20L = 1720
L* = 86 and C* = 560
Changes in commodity prices
Answer: B. 1 DEF Jan 50 Call
Explanation:
The Options Clearing Corporation (OCC) acting under its mandate of being an issuer and guarantor for options and futures contracts can alter options prices but does not do so for prices based on normal dividends as they are more regular and their effects are already accounted for in the price of the call.
When a company calls a one-time special cash dividend, this is new to the market which would not have incorporated it into the price of the call. The OCC will then adjust the price to account for this.
In this case it will do so by subtracting the dividend from the call;
= 55 - 5
= $50
The customer will then have 1 DEF Jan 50 Call
.
