In Metallgesellschaft's Hedging Debacle the company arranged long term forward contracts to sell oil/energy. Their hedge was to sell short-term futures contracts and roll into new months(called a stacked hedge). The hedge turned out poorly for MG because the stacked hedge works when markets are in backwardation and the basis risk resulted in negative profit between the selling the futures and delivering in the forwards. What is true about the activities of Metallgesellschaft's hedging I. sources of risk were basis risk and liquidity risk
II. losses on the short term futures contracts hedge would not be covered by the long term forwards
III. the stacked hedge works when markets are in contango
IV. Metallgesellschaft used a 1 to 1 hedge when they should have used an optimal hedge ratio

a. I, II, III, IV
b. I, II, IV
c. I, III
d. I, III, IV

In return for their with optimizing his painting project, the castle servant informed poly and digit that he saw someone dressed as the king leaving behind a trail of crumbs as he walked into the jester's room late last night. poly and digit have finally found the crisp-collecting culprit — it turns out the jester's shoe size and hair color match the clues that were found! in gratitude, poly and digit agree to the servant with his current task of replacing all of the tables and chairs in the castle. his goal is to determine which furniture company should produce the new furniture. he receives information from a company that customizes elegant furniture, and he wants to analyze the company's production process in order to calculate some problems about cost and availability. read the following scenario, and assist poly and digit as they the servant with his calculations. the fit for a king furniture company requires 2020 hours of labor to produce a standard table, and a chair requires 1212 hours of labor. the labor available is 565565 hours per week. the company can produce at most 3535 chairs per week.

When a market is in equilibrium, the buyers are those with the willingness to pay and the sellers are those with the costs.

Suppose there is a 6 percent increase in the price of good x and a resulting 6 percent decrease in the quantity of x demanded. price elasticity of demand for x is a. 0 b. 6 c. 1 d. 36