If the market price of an option just before its expiration is $33 while its strike price is $29, arbitrage will determine a price for it that:
a. leaves an investor indifferent between buying the stock outright or buying an option and then exercising it.
b. encourages the investor to buy the stock outright and sell it when the option expires.
c. encourages the investor to buy an option and exercise it only after its expiration.
d. encourages the investor to buy the stock outright and rewrite an option later.
A
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If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4, then the slope of the curve equals
A) 3. B) 4. C) 3/4. D) 4/3. E) 1.
Which of the following is most likely a topic of discussion in a microeconomics course?
a. a decrease in the share of national income paid to the government in taxes b. an increase in the price of lumber used to construct houses c. an increase in the rate of inflation d. an increase in the number of jobless individuals filing unemployment claims
For the United States since 1950, imports as a percentage of GDP has
A) tripled. B) increased slightly. C) remained constant. D) decreased.
Refer to the information provided in Figure 27.4 below to answer the question(s) that follow.
Figure 27.4Refer to Figure 27.4. A higher price level with higher unemployment would result in
A. stagflation. B. inflationary growth. C. deflation. D. deflationary growth.