commodity‚ you are giving up S0 today‚ and will get back ST. • If loan is fairly priced‚ its NPV=0 • NPV = E0(ST)e-αT - S0‚ • where α is required return on the commodity • if NPV=0‚ α is the “__________” 6-4 Commodity loan (cont) • Now‚ suppose commodity price grows at rate g‚ E0(ST)= S0egT • Then‚ NPV = S0e(g-α)T - S0‚ • But now if g 0.5% 6-21 More oil characteristics • Viscosity is a measure of how well if flows or the “friction” in the liquid water is very low viscosity
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prices? How would your answer change if you learn that a there is a recent gold mine discovery? 4. Suppose the demand curve for a product is given by: Q= 10-2P+Ps‚ where P is the price of the product and Ps is price of the substitute good. The price of the substitute good is 2. Suppose P = 1‚ what is the price elasticity of demand? What is the cross price elasticity of demand? Suppose P increases to 2‚ then what is the price elasticity of demand and cross price
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question and answer to part A: 2320‚ we see that taxes(money coming in) is less than government spending of 2610. This creates a deficit of -290billion. Also‚ it can be explained as the natural employment deficit of -2.5% (-290/11600=-0.025) (c) Suppose the goal of fiscal policy makers is to reduce the size of the natural employment deficit
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the money market fund. a. Determine how many units of each fund Innis should purchase for the client to minimise the total risk index for the portfolio. b. How much annual income will this investment strategy generate? c. Suppose the client desires to maximise annual return. How should the funds be invested? (ASW: Ch 2‚ Qn 37 – Innis - min) 2. Photo Chemicals produces two types of photographic developing fluids. Both products cost Photo Chemicals $1 per gallon
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Math IA Math Internal Assessment EF International Academy NY Student Name: Joo Hwan Kim Teacher: Ms. Gueye Date: March 16th 2012 Contents Introduction Part A Part B Conclusion Introduction The aim of this IA is to find out the pattern of the equations with complex numbers by using our knowledge. I used de Moivre’s theorem and binomial expansion‚ to find out the specific pattern and make conjecture about it. I basically used property of binominal theory with the relationship between the
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Attempt 1 Question 1 4 out of 4 points Suppose that a farmer grows wheat and sells it to a baker for $1‚ the baker makes bread and sells it to a store for $2‚ and the store sells it to the customer for $3. This transaction increases GDP by Answer Selected Answer: $3. Question 2 4 out of 4 points If production remains the same and all prices double‚ then real GDP Answer Selected Answer: is constant and nominal GDP doubles.
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curve? Question # 02: An addict ’s demand function for a drug may be very inelastic‚ but the market demand function might be quite elastic. How can this be? Question # 03: If D ( p ) = 12 − 2 p ‚ what price will maximize revenue? Question # 04: Suppose that the demand curve for a good is given by D( p) = 100 maximize revenue? p . What price will Question # 05: If consumer 1 has the demand function D1( p ) = 1000 − 2 p and consumer 2 has the demand function D 2( p ) = 500 − p ; then what will
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Week 4 – Check Your Understanding: Chapter 7 Exercise 1‚ 6‚ 8‚ and 9 1. In the Deep Creek Mining Company example described in this chapter (Table 7.1)‚ suppose again that labor is the variable input and capital is the fixed input. Specifically‚ assume that the firm owns a piece of equipment having a 500-bhp rating. a. Complete the following table: |LABOR INPUT L (NO. OF WORKERS)|TOTAL PRODUCT TPL (=|MARGINAL PRODUCT MPL |AVAERAGE PRODUCT APL | | |Q)
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Well‚ I suppose it’s better to talk about the reason we felt that we wanted to put an MRP II system in to start with. It started about 4 years ago I suppose we first started grappling with the problem of how to become more efficient and more effective in the future. I suppose that there were two driving forces. The first one was the need to contain costs and to make better use of the resources that we had. There was a shortfall in capacity. We have enough people‚ we have enough management resources
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Unit 3 Homework - Template Problem 1: Suppose that the supply schedule of Belgium Cocoa beans is as follows: Price of cocoa beans(per pound) | Quantity of cocoa beans supplied(pounds) | $40 | 700 | $35 | 600 | $30 | 500 | $25 | 400 | $20 | 300 | Suppose that Belgium cocoa beans can be sold only in Europe. The European demand schedule for Belgium cocoa beans is as follows: Price of Belgium cocoa beans(per pound) | Quantity of Belgium cocoa beans demanded(pounds) | $40
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