How is the writer of an option affected by changes in its stock price?


If the stock's price comes to exceed the strike price, the writer will have to give up her underlying or buy it on the market when the holder chooses to exercise the call. If the stock's price does not pass the strike price, she keeps the money she received from selling the option she wrote.

Economics

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In the United States in 2012, the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases) was lowest for people in the age range of ________, and the percentage of people with diabetes was lowest for people

in the age range of ________. A) 20-44; 20-44 B) 65 and older; 65 and older C) 45-64; 65 and older D) 65 and older; 20-44

Economics

Explain the principal-agent problem as it pertains to equity contracts

What will be an ideal response?

Economics

Which of the following examples is characteristic of a perfectly competitive market?

a. The green beans grown in Oregon have a higher market price than the ones grown in California. b. Some of the green beans grown in Oregon are better than the ones grown in California. c. All the green beans grown in Oregon are better than the ones grown in California. d. The green beans grown in Oregon have the same quality as the ones grown in California.

Economics

If the actual rate of unemployment equals the natural rate of unemployment, then:

A. potential output equals real GDP. B. potential output is greater than real GDP. C. potential output is less than real GDP. D. there is a recessionary gap.

Economics