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statuscvo [17]
3 years ago
10

Jamie wrote a nine−month put on beta stock. the strike price was​ $25 and the market price at the time the option was written wa

s​ $24. the total price of the option contract was​ $150. at what market price will jamie just break−even on this​ investment? ignore transaction costs and taxes.
Business
1 answer:
lions [1.4K]3 years ago
3 0
The market prices that Jamie will just break-even on this investment is $23.50. When we ignore all the transaction cost and taxes we will get the market price that she will just break-even on her investment is $23.50. The answer in this question is $23.50
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Answer:

Liquidity Effect

Explanation:

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Therefore, If the Fed increases its open market purchases of government securities, it exerts downward pressure on real interest rates. This situation is commonly referred to as LIQUIDITY EFFECT.

8 0
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6 0
3 years ago
If real GDP is $500 billion, full employment GDP is $300 billion, and the marginal propensity to consume is 0.9, then Congress s
melomori [17]

Answer:

tax increased = $22.22 billion

so correct option is 3. increase taxes by $22.22 billion.

Explanation:

given data

real GDP = $500 billion

employment GDP = $300 billion

marginal propensity = 0.9

solution

we know here that Inflationary gap will be

Inflationary gap = Real GDP - Full-employment GDP

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Inflationary gap = $200 billion

and tax Multiplier is

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here negative sign means that decrease real GDP by $9

so tax should be increased by $1

so we can say that decrease real GDP by $200 billion

and  tax should be increased = \frac{200 billion}{9}  

tax increased = $22.22 billion

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What factors impact the poverty rate?
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