At the expiration the premium of an option is equal to the option intrinsic value.
a. true
b. false
Ans: a. true
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If the price of a good falls, then the equilibrium consumption of that good:
A. increases if it is an inferior good. B. remains the same. C. decreases if it is a normal good. D. None of the statements is correct.
The transaction demand for money varies
A. inversely with nominal GDP and real GDP. B. directly with nominal GDP. C. directly with the interest rate. D. inversely with nominal GDP only.
Efficiency wages are ________
A) market clearing wages B) wages that are above the market-clearing level C) equal to the real wage rate minus the nominal wage rate D) equal to the nominal wage rate divided by some measure of the general price level
A Nash equilibrium:
A. is reached when all players choose the best strategy they can, given the choices of all other players. B. is a point in a game when no player has an incentive to change his or her strategy, given what the other players are doing. C. is a stable outcome of a game. D. All of these statements are true.