An option is a contract that always
A) gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract.
B) gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract.
C) states that the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
D) gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
D
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People's skepticism about central bankers' announcements of their intentions stems from the fact that policymakers may act in a fashion that is time inconsistent
a. True b. False Indicate whether the statement is true or false
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
Market power guarantees profit
A) True, which is why firm's locate as far away from each other as possible. B) False, market power guarantees price greater than marginal cost. C) True, market power guarantees price greater than average cost. D) False, market power guarantees price equal to average cost.
In the Cournot model, firms take their rivals' reactions as given.
Answer the following statement true (T) or false (F)