Pricing an option involves an application of all of the following except:
a. the Black-Scholes Model.
b. the law of one price.
c. the assumption that there are no unexploited profit opportunities.
d. the assumed probability that the stock price will go up.
d. the assumed probability that the stock price will go up.
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In an idealized laissez-faire world, the distribution of products is
a. the most efficient. b. the most fair. c. purely random. d. unpredictable.
Developing countries have been able to reduce the effect of depreciation on the value of their debt by:
A) issuing debt in U.S. dollars. B) issuing debt in domestic currency. C) appreciating their currency. D) using expansionary fiscal policy.
If the United States decides to allocate more resources to capital goods and less to consumer goods, the United States will obtain a greater degree of:
A) economic growth. B) full employment. C) price stability. D) technical efficiency.
Given their skills, a college graduate may be perceived as a good manager of time and the better fit for a managerial job than a high school graduate. This is an example of:
A. the learning effect of a college education. B. the signaling effect of a college education. C. the discriminatory effect of a college education. D. All of these