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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.
Explain, using the best framework you can think of (based on our class discussion), the effect of a large federal deficit on interest rates.
derive equations for IS,LM and AD curves.
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#qDiscuss the functions of money Illustrate your answeruestion..
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