Assume you pay a premium of $0.80/bu for a soybean call option with a strike price of $9.00/bu and that the current futures price is $9.30/bu. What is the option's current intrinsic value?

Suppose that the federal government had a budget deficit of $80 billion in year 1 and $10 billion in year 2, but it had budget surpluses of $140 billion in year 3 and $20 billion in year 4. Also assume that the government uses any budget surpluses to pay down the public debt. At the end of these four years, the Federal government's public debt would have

A) increased by $250 billion. B) decreased by $70 billion. C) decreased by $62.5 billion. D) increased by $70 billion.

Economists assume that rational people do all of the following except

A) undertake activities that benefit others and hurt themselves. B) respond to economic incentives. C) use all available information as they act to achieve their goals. D) weigh the benefits and costs of all possible alternative actions.