How self-interest by competitive firms promoted interests

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Q. Adam Smith in The Wealth of Nations asserted that the pursuit of self-interest by competitive firms promoted the interests of society. What did he mean by this?

Q. Consider an option on dividend-paying stock when stock price $30, the exercise price is $29, the risk-free interest rate is 5% p.a., the volatility is 25%p.a. and time to maturity is 4 months. Assume that the stock is due to go ex-dividend in 1.5 months. The expected dividend is 50cents

Reference no: EM1362219

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How self-interest by competitive firms promoted interests : Elucidate Adam Smith in The Wealth of Nations asserted that the pursuit of self-interest by competitive firms promoted the interests of society.

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