A call option is in the money if the futures price is greater than the strike price.
a. true
b. false
Answer: a. true
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Subject to a few legal and practical restrictions, anything may be exchanged for anything else. The distinctive advantage of money is that ________
A) it is likely to retain its value, whether it is kept or exchanged B) it has little, if any, use other than exchange C) it can generate income while it is kept D) it is likely to be accepted by everyone in exchange for anything E) none of the above
If households could be charged differently for different types of garbage,
A) the total amount of garbage would be reduced. B) recycling would be more difficult. C) costs of collecting garbage could be kept much lower. D) billing for garbage collection would be much easier. E) there would be a change in the types of items that are disposed of as garbage.
The short run is a period of time during which:
a. there is an expansionary gap that cannot be corrected using the passive approach. b. actual output equals potential output c. there is a recessionary gap that cannot be corrected through discretionary policy. d. resource buyers and sellers cannot adjust fully to changes in the price level. e. resource buyers and sellers can adjust fully to changes in the price level.
The most important responsibility of the Fed is to
A) clear checks. B) supervise member banks. C) serve as fiscal agent for the U.S. Treasury. D) control the money supply.