A call option is:
A. an option where all rights are granted to the seller of the option.
B. an option giving the seller the right to sell a given quantity of an asset at a specific price on or before a specified date.
C. any option written more than sixty days into the future.
D. an option giving the holder the right to buy a given quantity of an asset at a specific price on or before a specified date.
Answer: D
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Consider an industry that produces an output Q with marginal private cost (MC) and marginal social cost (MSC) as given in the table:
Q MC MSC 1 2 4 2 4 7 3 6 10 4 8 13 5 10 16 Which of the following is TRUE? A) The production of each additional unit results in a larger marginal external cost. B) The production of each additional unit results in the same marginal external cost. C) The production of each additional unit results in a lower marginal external cost. D) There are no marginal external costs associated with the production of this good.
If the supply of dollars in the market for foreign-currency exchange shifts right, then the exchange rate
a. rises and the quantity of dollars exchanged falls. b. rises and the quantity of dollars exchanged does not change. c. falls and the quantity of dollars exchanged rises. d. falls and the quantity of dollars exchanged does not change.