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Let Consider an economy with three states. The following set of stocks is traded: x1=(2,2,0) x2=(1,0,3) x3=(0,2,4). The t=0 prices of these stocks are given as follows (p1, p2, p3)=(1, 1, 1). (a) Is there an arbitrage?
(b) Assume an investment firm sells options. What is the price of a call option on stock 1 with exercise price E=1? What is the price of a put option on stock 2 with exercise price E=2.
Discuss the price output determination using profit maximization under perfect competition in the short run.
WHAT ARE THE FORMS OF COST FUNCTIONS?
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Assignment about law of variable proportion
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Perfectly Inelastic (Zero Elastic) Supply Supply is said to be perfectly inelastic if the quantity supplied is constant at all prices. The supply curve is a vertical straight
how to solve problems using derivatives ?
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