Suppose That a Maximization LP Problem Has Corners of (0,0)

question 17

Multiple Choice

Suppose that a maximization LP problem has corners of (0,0) , (5,0) , and (0,5) . How many possible combinations of X and Y will yield the maximum profit if profit is given to be 5X+5Y?

• A) 0
• B) 1
• C) 2
• D) 5
• E) Infinite

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Definitions:

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing an equal distribution in any profits, if any are declared, in the form of dividends.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account to avoid a margin call.

Short 100 Shares

The process of selling 100 shares that are not currently owned, with the expectation of buying them back at a lower price for a profit.

Initial Margin

The minimum amount of funds required to open a position in the futures market, intended to cover potential losses.