Consider a market with two​ firms, Hewlett-Packard​ (HP) and​ Dell, that sell printers. Both companies must choose whether to charge a high price ​($450 ​) or a low price ​($250 ​) for their printers. These price strategies with corresponding profits are depicted in the payoff matrix LOADING... to the right.​ HP's profits are in red and​ Dell's are in blue. Suppose HP and Dell are initially at the​ game's Nash equilibrium. ​Then, HP and Dell advertise that they will match any lower price of their competitors. For​ example, if HP charges ​$250 ​, then Dell will match that price and also charge ​$250 . What effect will matching prices have on profits​ (relative to the Nash equilibrium without price​ matching)? Assuming HP and Dell can coordinate to maximize​ profits, HP's profit will change by ​$nothing and​ Dell's profit will change by nothing . ​(Enter either positive or negative numeric responses using​ integers.)

Profits from using currency options and futures. on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda. com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2