To the options buyer, the premium paid for the contract represents the
A) maximum return.
B) largest potential loss.
C) yield.
D) transaction cost.
B
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Refer to the scenario above. What is the future value of Wendy's deposit after one year?
A) $2,110 B) $2,120 C) $2,360 D) $2,400
An American retailer sells dollars to obtain euros. It then uses the euros to buy ready-to-assemble furniture from Sweden. These transactions
a. increase U.S. net capital outflow because foreigners obtain U.S. assets. b. decrease U.S. net capital outflow because foreigners obtain U.S. assets. c. increase U.S. net capital outflow because the U.S. buys capital goods. d. decrease U.S. net capital outflow because the U.S. buys capital goods.
Why is it more difficult for a firm to calculate the marginal revenue product of a player in the industry of professional sports versus that of a worker in a competitive manufacturing industry?
What will be an ideal response?
Other things constant, what is the outcome of expansionary fiscal policies on employment, inflation, real output, and deficits in the short-run?