If the price of an underlying asset has a standard deviation of zero:
A. options for this asset would likely not exist.
B. options for this asset would have a time value of the option equal to the price of the asset.
C. option for this asset would be highly valued.
D. the intrinsic value of options for this asset would equal the asset's price.
Answer: A
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A) decrease; demand for; low-skilled; high-skilled B) decrease; supply of; low-skilled; high-skilled C) do not change; supply of; high-skilled; low-skilled D) do not change; demand for; high-skilled; low-skilled
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In the above table, what is the marginal factor cost of the 6th worker?
A) $30 B) $18 C) $120 D) $20
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