The strike price of an option is determined by the market.

a. true
b. false


Answer: b. false

Economics

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Jimmy grows corn. His total revenue and total cost are in the above table. What quantity of corn maximizes his profit and what is his profit? What is the marginal revenue and marginal cost at this quantity?

What will be an ideal response?

Economics

Which of the following falls when bond prices rise?

a. Stock prices. b. Interest rates. c. Money demand. d. Money supply.

Economics

In an economist’s view, a cartel usually offers to society

A. all the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly. B. all the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly. C. none of the cost benefits of large-scale production and none of the allocative inefficiencies of monopoly. D. none of the cost benefits of large-scale production and all of the allocative inefficiencies of monopoly.

Economics

The law of demand states that, other things equal, an increase in

a. price causes quantity demanded to increase. b. price causes quantity demanded to decrease. c. quantity demanded causes price to increase. d. quantity demanded causes price to decrease.

Economics