The value of the put option rises when the underlying asset
A) experiences price increases.
B) experiences price declines.
C) experiences reduced volatility.
D) has a relatively short maturity.
B
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Why does the presence of imperfect information lead to inefficiency?
What will be an ideal response?
The idea that any public information you will be able to find will prove of little value to you when buying and selling stocks, because that information is so quickly incorporated into the trading prices of stocks, is known as the
A) theory of efficient markets. B) theory of fundamental analysis. C) principle of context. D) over-the-counter hypothesis.
If the marginal propensity to consume is 0.75 and autonomous consumption spending will decrease by $30 billion, by how much would net taxes need to decrease in order to have no change in output? (Ignore any timing issues.)
a. $60 billion b. $30 billion c. $90 billion d. $120 billion e. $40 billion
If aggregate quantity supplied exceeds aggregate quantity demanded, we can expect an unplanned
a. depletion of inventories, causing firms to raise prices. b. depletion of inventories, causing firms to lower prices. c. accumulation of inventories, causing firms to raise prices. d. accumulation of inventories, causing firms to lower prices.