Suppose you enter into a 9-month long forward contract on a non-dividend-paying stock when the stock price is s0 = $125 and the risk-free rate is 2.0% per annum with continuous compounding. (a) what are the forward price (f0) and the initial value of the forward contract? (b) three months later, the price of the stock (s0) is $112, and the risk-free remains 2.0%. what are the forward price (f0) and the value of the forward contract? (c) another month later (4 months from today), the risk-free rate increases to 2.25% while the stock price stays $112.

Need with my trade theory homework. i doubt what i wrote was right.consider a monopolistically competitive market for soft drinks in which n symmetric firms face the following demand function: q=s(1/n-b(p-(p with the straight line on which implies the marginal revenue functionmr=p-(q/sb)finally, suppose firms face the total cost functiontc=900,000+100qsuppose the market size, s, is 27,000,000, and the elasticity parameter b is 0.003.diagram the price and the average total cost in the market as a function of the number of firms. what are the equations for each curve, and why does each curve slope up or down? label the equilibrium number of firms and the equilibrium price in the diagram. why is this the equilibrium?

What two things do you consider when evaluating the time value of money

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.