The two parts that make up an option's price are:
A. the commission and the time value of the option.
B. extrinsic value and the time value of the option.
C. the price of the underlying asset and the time value of the option.
D. the intrinsic value and the time value of the option.
Answer: D
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Which branch of economics considers that economic agents do not always act rationally?
A) Microeconomics B) Macroeconomics C) Behavioral economics D) Econometrics
If the current unemployment rate is 5%, under which of the following circumstances would you expect the Fed to use contractionary monetary policy?
A) if the inflation rate is above 5% B) if the inflation rate is below 5% C) if the natural rate of unemployment is below 5% D) if the natural rate of unemployment is above 5%
The main determinants of investment are the interest rates and expected profit.
a. true b. false
Refer to Figure 13-4. What is the area that represents the total variable cost of production?
A) 0P0aQa B) P0abP1 C) P1bdP3 D) 0P1bQa