Farmer Jayne decides to hedge 10,000 bushels of corn by purchasing put options with a strike price of $1.80. Six-month interest rates are 4.0% and the total premium on all puts is $1,200
If her total costs are $1.65 per bushel, what is her marginal change in profits if the spot price of corn drops from $1.80 to $1.75 by the time she sells her crop in 6 months?
A) $248 loss
B) $0
C) $252 gain
D) $1,500 loss
B
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According to the equity theory, if you pay an individual an hourly rate, overpaying this individual will result in greater output.
a. true b. false
Which of the following is true of the dependent variable in regression analysis?
A) used to predict the independent variable, and it is the x in the regression formula B) used to predict the independent variable, and it is the y in the regression formula C) predicted, and it is usually termed x in the regression formula D) predicted, and it is usually termed y in the regression formula E) predicted by the categorical variable, termed i, in the regression formula