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Suppose you buy call options on Microsoft stock. Each option costs $2 and has the strike price of $40 and the expiration date July 1. Discuss whether you would exercise the options in each of following situations.
a. It is March 1, and Microsoft stock price is $30.
b. It is March 1, and the stock price is $40.10
c. It is March 1, and the stock price is $50
d. It is June 30, and the stock price is $50.
Private sector in the circular flow The private sector total income is known as the national income. Because private sector receives the entire return from the factors of pr
Q. Monetary base and the supply of money? It isn't possible for central bank to print and distribute money -which would increase their debt without increasing their assets. Rat
1. Consider the following game: a) Does either player have a dominant strategy? b) Does either player have a (pure) prudent strategy? c) Does the game have a saddlepo
define business cycle
the whole explanation of dpd
disuss with an aid of a diagram the kinked demand curve
a) There is a general trade, and sometimes prominent as in case of UK, Canada, and Europe. When the tariff rates are showing an upward trend, the trade/GDP ratio is either declinin
Macro Economics 1. How was the Classical Theory of interest role criticized by Keynes? 2. Illustrate the barter system that was used in early times in lieu of money. 3.
y=c+c1(y-t0-t1y,r)+i+g
Q. Explain the long-run Phillips curve? The long-run Phillips curve The augmented Phillips curve has an important consequence: the long-run Phillips curve must be vertical
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