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The put option at the same strike and the same maturity trades at 2.00 cents per 100 yen. Determine whether there is an arbitrage opportunity in the option market, using the put-call parity.
Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $8, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $6. Based on this infor
Graph the supply and demand for real money balances. Assume that the price level is ?xed. What happens to the equilibrium interest rate if the supply of money is raised from 1; 000 to 1; 200?
Find the equilibrium interest rate r and the equilibrium level of income Y. Derive an equation for the aggregate demand curve given initial condition with variable P.
If a government wants to reduce in?ation by 3 percent for year t, what is the increase/decrease in cyclical unemployment in year t? According to the Okun?s law, how much of a year?s real GDP would in
What is a project portfolio? What is strategic portfolio management? What is the relationship between strategic portfolio management and project management?
In February 2003, the city of London began charging a £5 congestion fee on all vehicles traveling in London. Illustrate the effects of this congestion charge on your graph and label the new eq
Consider the information provided. If the nominal exchange rate is 50 rupees per dollar and the inflation rate in India is 25%, while the aggregate price level has remained unchanged in the U.S.
What should the Fed do if it wants to stabilize aggregate demand? If the Fed does nothing, what might Congress do to stabilize aggregate demand?
What will be the competitive equilibrium wage rate and the level of employment? What will be the wage rate and the level of employment under monopsonistic conditions?
What's the equilibrium price and quantity in the free market equilibriu? What's the best tax to impose on the power plant, why? What's the equilibrium price and quantity in the optimal tax equilibrium
Suppose that the reserve ratio is 10% when the Fed sells $66,700 of U.S. Treasury bills to the banking system. If the banking system does NOT want to hold any excess reserves, _______ will be ______
Why might programmers living in the United States still be opposed to outsourcing? Think about the supply and demand for programmers in the United States. How might outsourcing affect wages?
What impact is the import quota reduction likely to have on the price of rubber and the quantity of rubber exchanged in China? What implications will the elimination of the quota on rubber have on C
What is the firm's Total Revenue? What is the Total Cost? What is the firm's Total Profits?
What rule should Leadbelly follow to hire the profit-maximizing amount of labor? Draw a diagram of the labor market for pencil workers next to a diagram of the labor supply and demand for Leadbelly Co
Which strategy do you believe would be more effective in the short term for accomplishing these goals? Which strategy do you believe would be more effective in the long term?
Assume that the gross national debt initially is equal to $3 trillion and the federal government then runs a deficit of $300 billion. What is the new level of gross national debt?
AC after the 30% increase in fixed costs is $9.30. Now, do you agree with speaker to increase the price of the company's product to more than $9? Explain.
Suppose the price of apples goes up from $22 to $25 a box. In direct response, Goldsboro Farms supplies 1500 boxes of apples instead of 1000 boxes. Compute the coefficient of price elasticity (midp
How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller than accounting profit? What are the three basic sources of economic profit?
Define economic rent. In the graph below, assume that the market demand curve for labor is initially D1. What are the equilibrium wage rate and level of employment? What is the amount of economic rent
Describe wage determination in a labor market in which workers are unorganized and many firms actively compete for the services of labor. Show this situation graphically.
Your company can destroy the past improvements and build a factory on the land. In consideration of the factory project, what amount (if any) should the land be valued at?
A perfectly competitive constant cost industry contains a number of firms, each of which has the following long-run total cost function, where q is annual output: Calculate the long-run equilibrium