Identify four factors that will cause the value of put options to decrease.
What will be an ideal response?
Put options will decrease in value if there is a decrease in the strike price, if there is an increase in the market price of the underlying asset, if there is a decrease in the time to maturity, or if there is a decrease in the volatility in the price of the underlying asset.
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Two-part tariffs allow the monopoly firm to capture all of the potential consumer surplus generated by the sale of its product
Indicate whether the statement is true or false
An upward-sloping supply curve of Korean won in terms of Canadian dollars indicates that:
a. the higher the dollar price of Korean won, the more won will be demanded. b. the higher the dollar price of Korean won, the fewer won will be supplied. c. the lower the dollar price of Korean won, the more won will be demanded. d. the lower the dollar price of Korean won, the fewer won will be supplied. e. the Korean economy is stronger than the Canadian economy.
The questions of what to produce, how to produce, and for whom are answered by
A. free-market economies. B. economies that are a mixture of planning and markets. C. command economies. D. all economic systems in some manner.
Concentration ratios:
A. may overstate the degree of competition because they ignore imported products. B. may overstate the degree of competition because interindustry competition is ignored. C. may understate the degree of competition because they ignore imported products. D. provide detailed insights as to the price and output behavior of firms that comprise the various industries.