As an option nears its expiration date, the size of the premium approaches
A) zero.
B) infinity.
C) its intrinsic value.
D) an amount which varies, depending on prevailing market interest rates on the expiration date.
C
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Refer to Table 2-16. What is Estonia's opportunity cost of producing one board foot of lumber?
A) 0.2 cell phones B) 5 cell phones C) 8 cell phones D) 32 cell phones
An advantage of a partnership over a proprietorship is
A) limited liability. B) that profits are not taxed twice. C) the ability to take advantage of greater specialization. D) that it is easier to dissolve.
Unplanned inventory decreases prompt firms to cut back on production until equilibrium output is restored
a. True b. False Indicate whether the statement is true or false
During an economic slump, policies that lower interest rates may not actually boost investment because
A) lower interest rates tend to discourage investment, all other things unchanged. B) investment is never affected by interest rate changes. C) of pessimistic expectations by businesses about the future of the economy. D) taxes may have been decreased during a recessionary period.