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Given the Following Feasible Solution,determine If the Problem Is Degenerate

question 89

Essay

Given the following feasible solution,determine if the problem is degenerate and then find the optimal solution and its cost.Assume that capacity for source A is 10 and 30 for source B.Destination A demands 10 units while destination B demands 30 units.Cost of shipping per unit is given as AA ($4),
AB ($1),BA ($3),and BB ($2).
Given the following feasible solution,determine if the problem is degenerate and then find the optimal solution and its cost.Assume that capacity for source A is 10 and 30 for source B.Destination A demands 10 units while destination B demands 30 units.Cost of shipping per unit is given as AA ($4), AB ($1),BA ($3),and BB ($2).

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Definitions:

Vega

The response of option price to a change in the standard deviation of the underlying asset.

Option's Price

The price at which a specific derivative contract can be exercised, determined by factors like the underlying asset's price, time to expiration, and volatility.

Volatility

The rate at which the price of a security increases or decreases for a given set of returns.

Time Value

The idea that having money now is more valuable than having the same amount later on because of its ability to generate earnings over time.

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