Suppose you purchase a call option with a strike price of $85 for an options price of $10 How much profit will you earn if you exercise it when the price is $100?
What will be an ideal response?
You will earn $15 minus the options price of $10 for a profit of $5.
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Economists define efficiency as
A. output maximization. B. the absence of waste. C. input maximization. D. the presence of surplus.
The figure above shows the market for milk. The ________ price that producers must be offered to get them to produce 100 gallons of milk per day is ________
A) maximum; $2.50 B) minimum; $3.00 C) maximum; $4.00 D) minimum; $2.50
When at least one productive resource is fixed, the firm is producing
a. in the short run. b. in the long run. c. only one type of product. d. at least two products.
The OLS residuals in the multiple regression model
A) cannot be calculated because there is more than one explanatory variable. B) can be calculated by subtracting the fitted values from the actual values. C) are zero because the predicted values are another name for forecasted values. D) are typically the same as the population regression function errors.