Suppose you purchase a put option to sell General Motors common stock at $80 per share in March. The current price of GM stock is $83 and the time value of the option is $1. What is the intrinsic value of the option?
What will be an ideal response?
In this case the intrinsic value of the option is zero, the intrinsic value of a put option is the strike price less the price of the underlying asset, which in this case is a negative 3; however an option will never have an intrinsic value less than zero since the option doesn't have to be exercised.
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Who is an unemployed worker? If the number of employed workers in a country, where the size of the labor force is 4 million, is 2.75 million, what is the number of unemployed workers in the country?
What will be an ideal response?
Monopolistic competition occurs in a market with free entry:
A. when there are only a few firms, each producing a unique product, prices above marginal cost and earns zero profit net of fixed costs. B. when there is a large number of firms, each producing an identical product, prices above marginal cost and earns zero profit net of its fixed costs. C. when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns zero profit net of its fixed costs. D. when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns a positive profit net of its fixed costs.
Most of the unemployment experienced during the Great Depression was
a. cyclical. b. structural. c. seasonal. d. functional.
If an economy produces 3,000 units of output with a money supply of $500 and a velocity of 9, we know the price level must be:
A. $1.50. B. $2. C. $4.50. D. $9.