Assume we have a stock currently worth $50. We also assume the interest rate is zero, and we can buy options for this stock with a strike price of $50. If the stock can rise or fall by $10 with equal probability over the option period, and the option cannot be exercised until the expiration date, what is the time value of the option?

If a 10 percent price increase generates a 20 percent decrease in quantity demanded, then demand is

A) elastic. B) perfectly inelastic. C) perfectly elastic. D) inelastic. E) unit elastic.

Education of girls is a crucial development investment because

(a) it leads to improved child health. (b) it leads to reduced fertility. (c) women do most of the work in agriculture. (d) all of the above.