Situation 1: Roses are red, violets are blue; 1. Using supply and demand analysis
A. Create a supply and demand schedule for the market of roses in 10 increments of 1.
b. Draw a correctly labeled graph for Roses and explain why the price of roses always seems to rise just
before Valentine's Day. (use the Equilibrium as a starting point and increase by 3 increments)
C. Explain what happens to the equilibrium?
2. Using the same scenario, suppose a freeze killed one-half of the rose crops just before Valentine's Day;
A. Illustrate and explain how it would this affect the market of roses.
b. Which determinant(s) would be affected for Supply and Demand?
3. What would happen to the equilibrium in the market for fine chocolates if one-half of the rose crops froze?
Explain why?
A. Which determinant(s) would be affected for fine Chocolates

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