If you buy a call option on Treasury futures at 110, and at expiration the market price is 115, the ________ will ________ exercised
A) call; be
B) put; be
C) call; not be
D) put; not be
A
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The absence of money illusion means that
A) as real income doubles, the demand for money doubles. B) as interest rates double, the demand for money doubles. C) as the money supply doubles, the demand for money doubles. D) as the price level doubles, the demand for money doubles.
Exhibit 1A-8 Straight line relationship
Which of the following would cause a shift in the relationship shown in Exhibit 1A-8?
A. A fall in household incomes. B. A fall in the price of pizza. C. A fall in the quantity of pizza that people wish to purchase. D. A rise in the price of pizza.
A basic feature of the classical system of self-regulating markets was that
A. overproduction and unemployment would cause prices and wage rates to increase. B. flexible wages and prices would eliminate unemployment and overproduction. C. overproduction would never occur. D. an increase in saving would cause an increase in the interest rate and a decrease in investment spending.
If scalpers were to charge exactly face value for tickets to a sold-out event, there would be
A. fewer tickets sold in the market for scalped tickets than buyers there want to buy. B. more tickets sold in the market for scalped tickets than buyers there want to buy. C. a scalped ticket available for every seat in the stadium. D. exactly as many tickets sold in the market for scalped tickets as buyers there want to buy.