If, for a $1000 premium, you buy a $100,000 call option on bond futures with a strike price of 110, and at the expiration date the price is 114, your ________ is ________
A) profit; $4000
B) loss; $4000
C) profit; $3000
D) loss; $3000
C
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point d?
A) a decrease in income B) an increase in the relative price of a soft drink C) a decrease in the relative price of a soft drink D) a decrease in the price of bottled water
A borrower and a lender agree on a mortgage interest rate. If inflation turns out to be less than expected
A) the actual real interest rate will exceed the expected real interest rate. B) the actual real interest rate will be less than the expected real interest rate. C) the actual nominal interest rate will be higher than expected. D) the actual nominal interest rate will be less than expected.
When the amount of sales is small, but each sale has a high value, cheating on a cartel arrangement can significantly increase an individual firm's profits
a. True b. False Indicate whether the statement is true or false
The mainstream orthodox treatment of the firm is based on the assumption of:
(a) Sales maximization. (b) Revenue maximization. (c) Profit maximization. (d) None of the above.