assume that the japanese yen is trading at a spot price of 92.04 cents per 100 yen. further assume that the premium of an american call (put) option with a strike price of 93 is 2.10 (2.20) cents. calculate the intrinsic value and the time value of the call and put options

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Answer 1

The premium of an american call (put) option with a strike price of 93 is 2.10 (2.20) cents the time value of the call = 2.10 cents and the time value for put = 1.24 cents

call option There will not be any gain if the Call option is exercised and bought at 93 cents. Because spot price is lower.Hence Intrinsic Value=0

put option With this option , one can buy at spot for 92.04 and SELL for 93Intrinsic Value =(93-92.04)=0.96 centsTime Value =2.20-0.96=1.24 cents

Options contracts are derivatives that grant investors the option, but not the duty, to purchase or sell an underlying security at a predetermined price at a future date. The option's strike price is this amount (or exercise price). The striking price for a put option is the price at which the security may be sold; for a call option, it is the price at which the option holder may purchase the asset.

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Related Questions

list three implications of competitiveness and collaboration for this global company as portrayed in the scenario, providing supporting details in the notes.

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Competitive and collaboration implications mainly involve:

involving or determined by rivalryagainst commercial rivals, the quality of the product should be high and the price must be low.having to do with or being marked by a competitive urge.

The increase in corporate cooperation significantly affects competition. Contrary to popular belief, teamwork may foster rivalry. Most businesses collaborate for offensive goals rather than defensive ones. Instead of monopolizing markets and driving up prices, they want to experiment and learn. Working together with a rival can give you access to data, analytics, trends, and fresh resources that are advantageous to both parties. Together, we can find new sales prospects, encourage cross-selling, and plan marketing campaigns.

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Knowing your decision-making style does not really help you determine your strengths and weaknesses as a decision maker, but it can help you understand when a decision needs to be made. True or false?.

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Knowing your decision-making style does not really help you determine your strengths and weaknesses as a decision maker, but it can help you understand when a decision needs to be made false.

whether you are main a team, a business enterprise or comparing your personal tasks, it is critical to recognize the way you arrive at a selection. Knowing this, you may be capable of examine if any other fashion is possibly higher in your profession or a selected situation.

Decision making is the choice of a technique to weigh options and discover a way to a hassle.  The 4 types of selection making are directive, conceptual, analytical and behavioral options. Every chief has a choice of ways to research a hassle and are available to a solution.

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an internal proposal is submitted to your own organization, while an external proposal is submitted to another organization. group of answer choices true false

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An internal proposal is submitted to your own organization, while an external proposal is submitted to another organization. The given statement is true.

What is internal proposal?
A form of proposal used it to promote a project inside your company is an internal proposal. Once people think of proposals, those who frequently picture external ones that are sent to another organisation to secure work. Proposals, however, can also be used from within to describe a concept and how your business might benefit from it. Since you all work for the same company, some elements of an external proposal are not necessary inside an internal proposal. Many of the components in an external proposal are also present in an internal proposal. These consist of an introduction, historical context, project advantages, a description of the work as well as its outcomes, methods, timetables, and costs.

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chegg the way apple has combined some of its tangible (e.g., financial resources and research laboratories) and intangible (e.g., scientists and engineers and organizational routines) resources to complete research and development tasks creates a

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Resources to complete research and development tasks creates a core competence in innovation.

An intangible asset is a resource that has no physical presence but still has long-term financial value to a company or business. Intangible assets are intellectual property owned by a company that can be used to generate value for the business over time. You can determine that an asset has long-term financial value if you expect its value to last for at least a year or more.

Even if you can't physically see or touch an intangible asset, it can still have a significant impact on business value. For example, a well-known brand is an intangible asset that can increase a company's net worth by increasing the reach of the target audience and increasing sales.

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banks can hold deposits at the federal reserve. balances in these accounts can be used by banks to meet their reserve requirements, but the fed pays no interest on these deposits. a. true b. false

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The Federal Reserve will accept deposits from banks. The Fed does not pay interest on the balances in these accounts, but banks may utilize them to satisfy their reserve requirements. False

The American nation's central banking system is known as the Federal Reserve System. After a string of financial panics prompted the need for centralized supervision of the monetary system to prevent financial crises, it was established on December 23, 1913, with the passage of the Federal Reserve Act. regulating and monitoring financial organizations and activities. The Federal Reserve ensures the stability and safety of individual financial institutions and keeps an eye on their effects on the overall financial system. In the fields of finance and economics, interest is the payment made at a set rate by a borrower or deposit-taking financial institution to a lender or depositor in excess of the principal amount. Interest differs from a fee the borrower might pay the lender or another entity. There are three different kinds of interest: simple (regular), accumulated, and compound.

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which of the following critical factors in the prestart-up and start-up phases considers whether the venture should be classified as lifestyle, small profitable or high-growth? a. uniqueness b. investment c. growth of sales d. product availability

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The critical factors in pre start -up  and start-up phases is growth of sales

Option C is correct .

Sales growth is a measure of the change in profit over a fixed period of time. Comparing profit between two financial ages demonstrates the rate of growth – positive or negative, of a business.

What causes growth in sales?

To increase sales you may have to introduce new products or services, expand your request, increase your marketing conditioning or ameliorate client service.However, this could mean adding your productivity to meet demand, If you're a manufacturer.

What's growth of sales creation?

Sales creation tends to produce sharp and fast increase in sales of the brand. This still is opposed by the issue of short term and long term impact of the creation. In addition to that one issue that's worth agitating then's cost/ sales rate for advertising and creation.

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the first essential characteristic of a perfectly competitive market is this: buyers and sellers have so much competition, they have no ability at all to set their own

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The first essential characteristic of a perfectly competitive market is this: buyers and sellers have so much competition, they have no ability at all to set their own price.

A flawlessly aggressive organization is referred to as a charge taker because the strain of competing companies forces them to simply accept the winning equilibrium charge withinside the marketplace.  If an organization in a superbly aggressive marketplace increases the charge of its product with the aid of using a lot as a penny, it's going to lose all of its income to competitors.

The 3 number one traits of best opposition.

no organization holds a vast marketplace share, the enterprise output is standardized, there's freedom of access and exit.  The green marketplace equilibrium in a great opposition is in which marginal sales equals marginal cost

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econ 201 functions are often described as cause and effect in economics. in an economics function, if the variable is on the right-hand side and is doing the explaining, it represents ano ?

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In an economics function, if the variable is at the right-hand aspect and is doing the explaining, it represents a effect.

The required details for variable in given paragraph

In programming, a variable is a price which could alternate, relying on situations or on statistics handed to this system. Typically, a application is composed of instruction s that inform the laptop what to do and information that this system makes use of whilst it's miles running. The information is composed of constants or constant values that in no way alternate and variable values . Usually, each constants and variables are described as certain information kind s. Each information kind prescribes and boundaries the shape of the information. Examples of information sorts include: an integer expressed as a decimal number, or a string of textual content characters, typically confined in length.

In item-orientated programming , each item includes the information variables of the class it's miles an instance of. The item's technique s are designed to address the real values which might be furnished to the item whilst the item is being used.

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when an account becomes uncollectible and must be written off allowance for doubtful accounts should be credited. accounts receivable should be credited. bad debt expense should be credited. sales revenue should be debited.

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In accounting, when an account becomes uncollectible and must be written off, then, the accounts Receivable should be credited and debited to allowance for doubtful accounts.

What is an account uncollectible?

In accounting, an accounts uncollectible refers to those receivables, loans or other debts that have virtually no chance of being paid. Some account can become uncollectible for many reasons such as including the debtor's bankruptcy, an inability to find the debtor, fraud on the part of the debtor, lack of proper documentation to prove that debt exists. etc

The action that will be taken when an account becomes uncollectible and must be written off is explained as follows. Whenever the accounts to which a company makes credit sales default their payments at the maturity of the credit period, then, the amounts related to those accounts are written off in the income statement as a bad debt loss.

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according to the theory of comparative advantage, countries gain from trade because world output can rise when each country specializes in what it does relatively best. trade makes firms behave more competitively, reducing their market power. output per worker in each firm increases. every country has an absolute advantage in producing something.

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According to the theory of comparative advantage, countries gain from trade because every nation has an absolute advantage in producing something.

An economy has a comparative advantage if it can produce a certain item or service at a lower opportunity cost than its trade counterparts. Comparative advantage is a theory that explains why trade is advantageous for businesses, nations, and people alike. Comparative advantage, as it relates to international commerce, refers to the goods that a nation can manufacture more readily or at a lower cost than other nations. Even while this often shows the advantages of trade, some modern economists now recognize that relying solely on comparative advantages can lead to resource exploitation and depletion in a nation.

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a grid that combines an employee's performance rating with his or her position within a pay range so as to determine the size and frequency of pay increases is known as the blank grid.multiple choice question.merit increaseprofit-sharingoutcome-orientedagency theory

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Increase profit-based compensation is a system for profitable personnel financially, out of doors in their ordinary salaries.

Examples include spot bonuses (where personnel is rewarded “immediately” for achievements that deserve a unique reputation), project bonuses (in which personnel is rewarded for the successful completion of an assignment), and retention bonuses (normally provided to lengthy-tenured personnel to encourage retention).

Benefit pay increases, or benefit bonuses, growth a worker's base pay due to their high overall performance.

They're commonly budgeted for and given on an annual basis.

Advantage-based totally will increase are the maximum not unusual form of overall performance-based compensation.

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What type of program would have a class named student with objects called fulltime and parttime?.

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A program that deals with students and their enrollment status would have a class named student with objects called fulltime and parttime.

What is part-time?
A job that is part-time typically has fewer hours each week than a full-time position. They put in shift work. Rotational shifts are common. When employees regularly put in less over 30 hours per week, they are regarded as part-timers. The International Labour Organization believes that, with the exception of the United States, the proportion of part-time workers had also increased from one-quarter to fifty percent over the past 20 years in most developed nations. Working part-time can be done for a variety of reasons, such as a desire to do so having one's hours reduced by an employer, or the inability to find a full-time position. Part-time employees must receive equal treatment to full-time employees, according to International Labour Organization Convention 175 (ILO 175).

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the potential benefit given up when selecting one alternative over another is a(n) blank cost. multiple choice question. sunk avoidable opportunity irrelevant

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Opurtunity cost is the potential benefit given up when selecting one alternative over another is a(n) blank cost.

benefits are the potential  benefit gains that a person, investor, or company forgoes by selecting one option over another. Opportunity costs are by nature invisible, thus it is simple to overlook them. It is possible to make better decisions by being aware of the potential  benefit opportunities lost when a company or person selects one investment over another. Opportunity cost is the benefit that was lost due to a decision that was made otherwise.

The advantages and disadvantages of each choice must be evaluated against one another in order to correctly assess opportunity costs.

Opportunity costs can help people and businesses make more profitable decisions by guiding them in this direction.

Opportunity cost is a cost that is entirely internal and is considered in strategic planning.

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compared with the network evening news shows (those on abc, nbc, and cbs), cable news stations such as msnbc, fox news, and cnn offer more commentary and detail in their news product.

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While network evening newscasts have stayed fairly constant throughout the years, the news programs that Americans watch on local television stations and national cable channels have altered substantially in recent years.

What change has been noticed?

Local television newscasts have recently emphasized traffic, weather, and sports, even more, aired less edited package stories, and cut the lengths of stories—trends that might be a result of the industry's current economic challenges.

There is a growing fear that local TV news may be suffering some of the financial difficulties that have already hammered the newspaper sector as younger people are tuning out local newscasts.

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one of the advantages of e-commerce is that it: group of answer choices a. improves customer service. b. is a universally accepted system. c. guarantees privacy and security of buyers. d. is highly accessible throughout the world.

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One of the advantages of e-commerce is that it is highly accessible throughout the world. Thus, option D is the correct answer.

E-commerce has many advantages like it is cost-effective, affordable, time saving, fast responding, service. Consumers from all over the world has an advantage over e-commerce. They can compare various sources to buy a single product. They receive a wide range of product list in order to purchase it.

Ecommerce describes companies and people who buy and resell products and services online. E-commerce operates in a range of market areas and can be done on computers, tablets, cellphones, and other smart devices. Nearly any product or service imaginable is now available through e-commerce transactions, including books, music, airline tickets, and financial services like stock trading and online banking.

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the impact of the recession of 2009 has seen slow recovery which lasted well into 2013. if an individual saves $5,700 and elects to place the total dollar ammount into a savings account earing 2.75 apr compounded monthly, how much will thr original deposit grow in 12 yearsd

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The original deposit grow in 12 years is $ 7926.

Deposit growth means the fee of annual increase in an entity's deposits, aside from certificates of deposit (or other comparable deposit gadgets), for a monetary yr ending on a December thirty first taking place all through the overall performance Vesting duration.

Business bank deposits increased at a document pace in 2020 and into early 2021 reflecting accelerated precautionary saving via families and companies in response to the pandemic.

Increasing deposits is vital to sustainable, profitable increase techniques. In a rising charge surroundings that is coupled with strong monetary boom attaining deposit goals is the exceptional manner to control funding fees whilst enabling your financial institution or credit score Union to fulfill the lending wishes of your customers and participants.

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at a sales level of 21,000 units, pony corporation has sales of $420,000, a variable cost ratio of 50%, and a profit of $88,000. what is the break-even point in units?

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Based on the sales level, the variable cost ratio, and the profit, the break-even point in units can be found to be 12,200 units

How to find the break-even point in units?

The break-even point in units can be found by the formula:

Break-even point in units = Fixed costs ÷ Contribution margin per unit

First, find the fixed costs. To do that, you need to use the formula:

= Sales - Variable Cost - Profit

= 420,000 - (420,000 x 50%) - 88,000

= 420,000 - 210, 000 - 88,000

= $122,000

Then, find the contribution margin per unit:

= Selling price per unit - Variable cost

= Selling price per unit x (1 - variable cost ratio)

= 420,000 / 21,000 x (1 - 50%)

= 20 x 50%

= $10

The break-even point in units is therefore:

Break-even point in units = Fixed costs ÷ Contribution margin per unit

= 122,000 / 10

= 12,200 units

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an auto repair shop faces the following weekly costs: rent, $500; labor, $400 per worker; parts and supplies, $50 per repair. each worker can repair 3 cars per week.

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Based on the weekly costs to the auto repair shop, the total costs incurred if the auto repair shop repaired 3 cars per week would be $2,950.

How to find the total cost?

If there are 15 cars to be repaired, then the total number of workers needed is:

= Number of cars / Number of cars per worker

= 15 / 3

= 5 workers

The total cost would then be:

= Fixed cost + (Parts and supply cost per repair x number of repairs) + (Cost of labor x Number of workers)

= 500 + (50 x 15) + (400 x 5)

= $3,250

The question is:

If the shop repairs 15 cars in a week, the total costs are $

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What is a technique where a business offers a free basic product giving the customer an option to use an advanced version for a premium cost?.

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Freemium pricing encourages users to subscribe to the paid, premium version in order to access additional features or selections after using the basic product or service for free. Potential clients receive knowledge about your business while getting a taste of what the good or service can achieve for them.

What is Freemium pricing?

With freemium pricing, a company provides a version of its product or service with a restricted feature set while charging for one or more premium versions that come with more comprehensive feature sets.

The idea behind a freemium pricing model is that customers who take advantage of the product or service's free version would be satisfied with it or realize a need for it, leading them to eventually buy a paid version.

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jim is haggling with a car dealer on the price of a used car. if the dealer is getting a bonus per sale made, in addition to the commission, the storekeeper’s a.​disagreement value increases b.​eagerness to agree increases c.​disagreement value decreases d.​both b

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Since the car dealer receives commission on each transaction as well as a bonus for each one, he or she will make an effort to close as many deals as possible haggling.

As for this, even after talks, the dealer will attempt to sell the car for as little money as possible because there is a benefit to sales on both the value and the volume of sales. car dealer Because the customer must take into account and account the amount of repairs that need to be made to the automobile throughout the transaction process, the surplus sales of the car must decrease haggling. The car has numerous dings that need to be fixed, and the purchaser will take that into consideration. car dealer Less money will be required from the consumer, which will reduce the sales excess. The price elasticity of demand for cars is unitary, which means that any percentage rise or decrease in a product's price will result in an equivalent increase or decrease in the demand for the product. If automobiles cost $20,000 and the current sales volume is 30, then. haggling There must be a price cut in order to raise sales to 50 units.

How much of an increase in the amount to be sold do we have? 50 - 30 = 20 20/30 = 66.67 appx 67% Consequently, a 67% drop in the car's price will result in a 67% rise in sales volume. The car will cost $20,000 * 67%, which equals $13,400. The new price is $20,000 - $13,400, which is $6,600.

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the approach to ethics advocates that a manager in a multinational firm who sees other firms operating in the same nation not following ethical norms, may follow

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The Naive Immoralist Approach to Ethics recommends a management in a multinational corporation who observes other corporations in the same country not upholding ethical standards.

Unrelated to its owners, a company is a separate legal entity. Numerous legal rights and obligations apply to businesses just like they do to people. They are able to make agreements, lend and borrow money, file lawsuits and defend them, appoint personnel, possess property, and pay taxes. Corporate entities are sometimes referred to as "legal persons." Unlike its owners, a company is considered to be a separate legal entity.

Numerous legal obligations and rights that apply to individuals also apply to corporations. Limited liability, which prevents a corporation's shareholders from being held personally liable for the debts of the business, is a crucial component. An individual or group of people with a common objective can form a corporation.

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defond services, a firm providing art services for advertisers, began business on june 1. the following accounts are needed to record the transactions for june: cash; accounts receivable; supplies; office equipment; accounts payable; common stock; dividends; service fees earned; rent expense; utilities expense; and wages expense. prepare a journal entry for each transaction.

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To prepare the journal entries for the business transactions, we start with the debits followed by credits.

June 1: DeFond invested $12.000 cash to begin the business in exchange for common stock.

Debit Cash 12,000; Credit Common stock 12,000

June 2: Paid $950 cash for June rent.

Debit Rent expense 950; Credit Cash 950

June 3: Purchased $6,400 of office equipment on credit.

Debit Office equipment 6,400; Credit A/P 6,400

June 6: Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days.

Debit Materials & supplies 3,800; Credit Cash 1,800; credit A/P 2,000

June 11: Billed clients $4,700 for services rendered.

Debit A/R 4,700; Credit Revenue 4,700

June 17: Collected $3,250 cash from clients on their accounts billed on June

Debit Cash 3,250; Credit A/R 3,250

June 19: Paid $5,000 cash toward the account for office equipment (sec June 3)

Debit A/P 5,000; Credit Cash 5,000

June 25: Paid $900 cash for dividends.

Debit Dividends 900; Credit Cash 900

June 30: Paid $350 cash for June utilities.

Debit Utilities expense 350; Credit Cash 350

June 30:Paid $2,500 cash for June wages.

Debit Wages expense 2,500; Credit Cash 2,500

Here's the complete question:

Defond services, a firm providing art services for advertisers, began business on june 1. the following accounts are needed to record the transactions for june: cash; accounts receivable; supplies; office equipment; accounts payable; common stock; dividends; service fees earned; rent expense; utilities expense; and wages expense. prepare a journal entry for each transaction.Record the following transactions for June using the financial statement effects template.

June 1: DeFond invested $12.000 cash to begin the business in    exchange for common stock.

2: Paid $950 cash for June rent.

3: Purchased $6,400 of office equipment on credit.

6: Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days.

11: Billed clients $4,700 for services rendered.

17: Collected $3,250 cash from clients on their accounts billed on June

19: Paid $5,000 cash toward the account for office equipment (sec June 3)

25: Paid $900 cash for dividends.

30: Paid $350 cash for June utilities.

30: Paid $2,500 cash for June wages.

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on july 1, 2025, bramble co. pays $13,920 to oriole insurance co. for a 1-year insurance contract. both companies have fiscal years ending december 31.

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Journal entry for Bramble Co. will be as follows:  July 1) Prepaid Insurance - 14760 (dr) Cash - 14760 (cr)

Dec 31) Insurance Expense - 2460 (dr)

Prepaid Insurance - 2460 (cr)

On journal entry of july 1 Bramble Company gets an insurance policy from Oriole which is why the transaction is being debited and cash is credited as it goes out of the company

On journal entry of Dec 31 expense is done from the insurance being paid throughout the year and prepaid insurance is credited as it is already paid.

The sum that the insured must pay when acquiring an insurance policy is referred to as an insurance premium. A legitimate contract involving a consideration to be paid between the insurer and the insured is an insurance scheme. The fundamental journal entry for a paid insurance premium is Debit: Cost of insurance and credit: Cash/Bank

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Complete Question: On July 1, 2025, Bramble Co. pays $13,920 to Oriole Insurance Co. for a 1-year insurance policy. Both companies have fiscal years ending December 31. For Bramble Co., journalize the entry on July 1 and the adjusting entry on December 31.

planters corp. wrote off a customer's uncollectible account in april. in the following month, planters collected from the customer in full. the entry to reinstate the account would require a

Answers

Planters corp would require a credit to Allowance for Uncollectible Accounts.

Allowance for uncollectible accounts is a balance-sheet contra asset account that represents accounts receivable that the company does not intend to collect. When clients purchase things on credit and fail to pay their bills, the selling corporation is required to write off the unpaid amount as uncollectible. Allowance for uncollectible accounts, also known as allowance for questionable accounts, is a type of expense that can be deducted as bad debt expense or uncollectible accounts expense.

Finding the appropriate amount for the provision for dubious accounts is not an easy task. Furthermore, it is the result of years of activity. Have financial documents that show how many accounts have not been gathered to produce a standard allowance.

Hence the account needs a credit allowance.

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the smithsonian institution exists to preserve historical and cultural items of value and to share those items with the public; it does not exist to maximize the wealth of any shareholders. this entity is organized as a(n) group of answer choices

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the Smithsonian institution exists to preserve historical and cultural items of value and to share those items with the public; it does not exist to maximize the wealth of any shareholders. this entity is organized as not-for-profit corporation.

What is a not for profit corporation?

This is the term that is used to refer to an establishment that was not created for the sake of making money.

The goal would be to offer services to the public but not for them to pay for the services that they are offered. Hence the people would be able to share in the historical value of this items but they are not allowed to pay to do so.

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complete question

The Smithsonian Institution exists to preserve historical and cultural items of value and to share those items with the public; it does not exist to maximize the wealth of any shareholders. This entity is organized as a(n)

cooperative.

quasi-government corporation.

S-corporation.

not-for-profit corporation.

closed corporation

sun-jun relies on a cost-benefit analysis to decide if moving operations overseas is better than increaseing the size of the current manufacturing facility in the united states

Answers

He is using the utilitarian approach to ethics to determine his answer. Many companies now use specialized methods with a utilitarian foundation, such cost-benefit analysis and risk assessment.

One thing to keep in mind is that the theory is a type of consequentialism: the proper course of action is wholly defined in terms of the outcomes created. The extent of the pertinent consequences is what sets utilitarianism apart from egoism. According to the utilitarian perspective, one should maximize the good overall, which means taking into account both one's own good and the benefit of other.

Sun-Jun relies on a cost-benefit analysis to decide if transfer operations overseas is better than increasing the size of the current manufacturing facility in the U.S. He is using the Utilitarian approach to ethics to determine his answer.

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Analysis using a ppc the effect on an economic of an increase in the supply of labour

Answers

A model that illustrates the trade-offs related to allocating resources between the production of two things is called the Production Possibilities Curve (PPC).

What effects does the economy's growth have on PPC?

The PPC model, which measures production possibilities, takes economic expansion into account. The production possibilities curve illustrates the maximum output of two items an economy is capable of generating, such as capital goods and consumer products. If production capacity has increased, that curve will change direction.

How may PPC be used to illustrate the law of escalating opportunity cost?

Opportunity costs are fixed no matter how far down the curve you go when the PPC is a straight line. As you walk along the PPC while it is concave (bowed out), opportunity costs rise.

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Which is a conflict-resolution strategy where team members focus on their individual role in the conflict?.

Answers

Do not disregard conflict.

Make the problem more clear.

Get the Parties Involved to Talk Together.

What are the four approaches to resolving conflicts?

Avoiding.

Compromising.

Competing.

Collaboration.

What are the three steps to resolving disputes?

Organizations frequently experience task conflict, interpersonal conflict, and value conflict, in particular. The three different types of conflict can all benefit from specific conflict-resolution strategies, even though open communication, cooperation, and respect will go a long way toward conflict management.

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products, which are products or services that have been standardized for all markets, are becoming increasingly important in international marketing efforts.

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Global products, which are products or services that have been standardized for all markets, are becoming increasingly important in international marketing efforts.

In simple terms, the notion of global marketing is a marketing strategy that is carried out and followed by many countries in the world. So global marketing is an economic activity, namely buying and selling products in the global market carried out by the world community.

Some of the benefits of global marketing that can be obtained, among others:

Economic Growth, the first benefit of global marketing is that a country's economic growth will increase.Can Improve Competence of Business Actors, the next benefit of global marketing is that it can increase the competence of business actors who run it.Produce More Quality Products, another benefit of global marketing is that it will produce quality products.Survival and Job Opportunities, the point is that global marketing is useful in meeting people's basic needs and can create opportunities for a better life.

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1) imagine an economy with the following set of assumption: 1) there is only one good in the economy that is consumed for two periods: x1 and x2 2) two (groups of) individuals: individual a and individual b 3) utility function of individual a: ????????(????1????, ????2????)

Answers

The joy or pleasure that consumers derive from purchasing a commodity or service is known as utility in economics. A set of products and services are measured using the utility function.

As per the question the utility function of individual A=

UA(X1A + X2A)= logX1A+ logX2A

And the utility function of individual B=

UB(X1B + X2B) = logX1B + logX2B

here the utility coefficient beta responsible for risk taking capability.

U'A= 1/. X1A +  B*1/. X1B

U''A=Beta ............ So when U''A= Beta , the utility function will risk taking Convex function                                

when b<0, the utility function will risk avarse Concave function

when b=0 the utility function will be risk neutral linear function

The benefit or enjoyment that consumers experience is abstract and challenging to quantify, but utility function is quantified in units called utils—the Spanish word for useful. As a result, economists gauge utility by looking at customer decisions in terms of disclosed preferences. The utility function ordering of consumption baskets from least liked to most favored is then created by economists.

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The complete question is

Imagine an economy with the following set of assumption:

1) There is only one good in the economy that is consumed for two periods:X, and X2

2) Two (groups of) individuals: Individual A and Individual B

3) Utility function of Individual A: UX(X1X,X2A) = logX1A + B^logX2A

4) Utility function of Individual B: UR(X18, X2R) = logX1g + bBlogX2g

5) Individuals have period 1 endowment (e1,e) = (40,20)

6) Individuals do not have any endowments in period 2. Instead, in period 1, they own shares of the company that will produce the consumption good in period 2. One share of the stock is a claim to 1 unit of consumption good to be produced in period 2. The company will produce 40 units of good in period 2 and the current ownership of the firm is as follows:

(A,B) = (15,25)

7) Individuals can trade shares in period 1. The relative price of the share is Te.

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