Choose the One Alternative That Best Completes the Statement or Answers

question 240

Multiple Choice

Choose the one alternative that best completes the statement or answers the question.
Rewrite the equation in terms of base e. Express the answer in terms of a natural logarithm, and then round to three
decimal places.
- $$y = 13 ( 5.4 ) ^ { x }$$

• A) \(y = 13 \mathrm { e } ^ { \mathrm { x } \ln 5.4 } , \mathrm { y } = 13 \mathrm { e } ^ { 1.686 \mathrm { x } }\)
• B) \(y = 5.4 \mathrm { e } ^ { \mathrm { x } } \ln 13 , \mathrm { y } = 5.4 \mathrm { e } ^ { 2.565 \mathrm { x } }\)
• C) \(y = 13 \mathrm { e } ^ { 5.4 \mathrm { x } } , \mathrm { y } = 132.718 ^ { 1.686 \mathrm { x } }\)
• D) \(\mathrm { y } = ( \ln 13 ) \mathrm { e } ^ { \mathrm { x } } \ln 5.4 , \mathrm { y } = 2.565 \mathrm { e } ^ { 1.686 \mathrm { x } }\)

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Definitions:

Loss

The reduction in the value of an investment or the difference between the purchase price and the lower selling price.

Basis Risk

The risk that the price of a futures contract may not move in tandem with the price of the underlying asset, leading to potential losses in a hedging strategy.

Basis

The spot price minus the futures price.

Short Hedger

An investor who enters into contracts or investment positions to reduce the risk of price decreases in an asset they currently own or plan to own.