Answer:
a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.
Explanation:
The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc
So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase
The stock price is mathematically given as
P=$57.64
<h3>What is the
stock price?</h3>
Generally, the equation for is Value after year mathematically given as
V= $1454.25
Hence, the current value is mathematically given as
I=Discounting factor equal to the future cash flows multiplied by their present value
I=$1063.508769
current value for ordinary stock
I'=$1037.508769million
In conclusion, the stock price is
P=(1037.508769/18)
P=$57.64
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Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.
<h3>When the business earns normal profits?</h3>
A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.
Hence, Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. The correct statement is Option A.
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Market economy is the economic system which private businesses can operate freely with minimal state control
Answer:
The impact of spending $50,000 on the research and development for a new drug to to cure liver damage will increase the expenses of the Morgan Pharmaceutical in the years financial statements.
Explanation:
Morgan pharmaceutical is pending $50,000 on he research and development of new drug which can cure the liver damage, from this spending company is expecting that after they have successfully created new drug it will lead to the increase in sales , which will ultimately lead to increase in profits , which then would totally recover the initial cost incurred on research and development but until then these expenses would be shown in the current years financial statement as expenses, and thus would increase the total expenses of the company.
