You hold a put option on December corn with a strike price of $4.00/bu. The December corn futures price is $4.75/bu. The intrinsic value of the option is:

The multiplier effect following an increase in expenditure is generated by induced increases in consumption expenditure as income rises

Indicate whether the statement is true or false

The theory of purchasing power parity suggests that, in the long-run, exchange rates are determined by ________

A) relative interest rate levels B) relative price levels C) the GDP values for the two countries D) the most significant monetary authorities, including the Federal Reserve, European Central Bank, Bank of England and the Bank of Japan