With a put option, what specifically does the option holder receive for the price paid for the option?
What will be an ideal response?
The option holder (buyer) receives the right but not the obligation, to sell the underlying asset at a specific (strike) price on or before the expiration date of the option. If the strike price is above the spot or current market price the option holder will profit from exercising the option. If the strike price is below the spot price of the underlying asset, the option holder will let the option simply expire.
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Diseconomies of scale occur
a. before the optimal scale is reached. b. at the optimal scale of operation. c. after the optimal scale is reached. d. prior to the lowest point of the ATC curve.
During the 1965-2009 period, the price index of healthcare services
a. declined slightly relative to the overall consumer price index. b. fell by approximately 50 percent compared to the overall consumer price index. c. increased at twice the rate of the overall consumer price index. d. rose during a brief period following the passage of Medicare and Medicaid but has been relatively stable since that time.
If the Fed wanted to use open market operations to reduce interest rates, it would:
A. buy T-bills from banks. B. sell T-bills to banks. C. issue T-bills on behalf of banks. D. grant banks permission to issue T-bills.
If quantity demanded is greater than quantity supplied
A. the price will fall. B. the price will rise. C. the market is cleared. D. the price is at equilibrium.