Which of the following is not a determinant of option premiums?
A) The volatility of the underlying stock
B) The price of the underlying stock
C) The time to expiration of the option
D) All of the above are determinants of option premiums.
D
You might also like to view...
The perfectly discriminating monopolist will produce the
(a) quantity at which average cost exceeds marginal revenue. (b) quantity at which marginal cost equals average cost. (c) quantity at which marginal revenue equals marginal cost. (d) quantity and price which is not necessarily profit-maximizing but in the best interest of society at large, even if it means loss.
As Figure 10.5 shows, government receipts and outlays tend to fluctuate over time. For example, beginning in 2007, when the economy stagnated as a consequence of the financial crisis, government receipts declined while outlays increased
What will be an ideal response?
If government policy encouraged households to save more at each interest rate, then
a. the real exchange rate and net exports would rise. b. the real exchange rate and net exports would fall. c. the real exchange rate would rise and net exports would fall. d. the real exchange rate would fall and net exports would rise.
Isoquants slope downward because:
A. the marginal rate of substitution increases. B. as less of one input is used, more of another must be used if costs are to remain constant. C. average total costs decline. D. as less of one input is used, more of another must be used if output is to remain constant.