Author Question: Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. ... (Read 112 times)

notis · **on:** Jul 1, 2018

Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. Suppose the storage costs are zero and the initial production costs are the same. What is the implied (approximate) interest rate if black sells for 12, red for 16 and blue for 44.
a. 2
b. 5
c. 8
d. 10

Question 2

Suppose Johnny Stroller sells 12, 25, and 75 year-old scotch in under black, red, and blue labels. Suppose the storage costs are zero and the initial production costs are the same. What is the implied (approximate) interest rate if black sells for 18, red for 34 and blue for 388.
a. 2
b. 5
c. 8
d. 10