The company negotiators and the union representatives cannot reach an agreement. They bring in a third party to facilitate the negotiation. Which of the following occurs when the third party makes the decision?

The major advantages of futures options over futures contracts include

I. positions can be hedged with a smaller commitment of capital. II. potential losses are limited to the size of the contract. III. greater leverage and the potential for higher percentage returns. IV. a greater variety of commodities is available for speculating or hedging purposes. A) II, III and IV only B) I, II and III only C) I, II and IV only D) I, II, III and IV

In the economic order quantity (EOQ) model, the optimum order quantity is obtained by identifying where the total cost curve and the ordering costs curve intersect

Indicate whether the statement is true or false.