Suppose you purchase a call option with a strike price of $85 for an options price of $10 How much profit will you earn if you exercise it when the price is $100?

According to Classical interest rate theory, falling interest rates will

A) increase the demand for money. B) decrease the demand for money. C) decrease investment expenditures. D) decrease the saving rate.

If a 10% decrease in the price of a good leads to a 20% increase in the quantity demanded, then what is the price elasticity of demand?

A. ½. B. 2. C. 20. D. 10.