Which of the following factors would tend to increase the size of the premium on an options contract?
A) The option is near its expiration date.
B) The current default-risk-free interest rate is high.
C) The price volatility of the underlying asset is low.
D) The option is far away from its expiration date.
D
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In the "old days" (prior to 2008), the Fed typically conducted monetary policy by:
A. buying long-term assets like mortgage-backed securities. B. adjusting government spending and taxation. C. changing the interest rate that it paid banks on their reserves. D. targeting the federal funds rate with open market operations.
What happens to the maximum amount of "all other goods" that this person can buy if instead he receives the $100 in food coupons? What's the maximum amount of food he can buy under this plan?
What will be an ideal response?