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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.
Assume that there are only two inputs (labor and natural resources) producing two goods (movies and gasoline) with no improvement in society's technology over time. Further, assume
Determination of all endogenous variables We can explain how all the endogenous variables are determined in below figure: Figure: The Keynesian model with the Phillips c
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Enumerate the statement- Interest rates with longer maturity Since loans with longer maturities are substitutes for overnight loans, the central bank also has some control o
what are the factors effecting reciprocal demand?
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