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Explain how a change in general economic circumstances

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1. Explain how a change in general economic circumstances may affect the value of a firm. Give a practical example.

2. Explain why a short position in a call option can lead to unlimited losses. Give a practical example.

3. Explain the difference between relative and absolute purchasing power parity. Which is a more realistic representation of exchange rate determination? Why?

Reference no: EM133001694

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