Answer:
0.31
Explanation:
current stock price $70
risk free rate = 6%
standard deviation = 40$
30 day call option $75
the simplest way to calculate delta (or stock position) is to use a scientific calculator, but if you want you can also do it manually:
delta = N(d₁) ⇒ cumulative normal distribution probability at d₁
with d₁ = [ln (S/K) + (r2 + σ
²/2)T] / σ√T
Answer:
The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short run; however, a tax-rate reduction will increase the automatic-stabilizer properties of the tax system, so equilibrium real GDP would be less stable.
Explanation:
Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.
This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.
If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.
The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.
Answer: a pop-under
Explanation: An ad inviting Jones to subscribe the print version as indicated in the question is an example of a "pop-under". Pop-unders are defined as advertisements that appear underneath webpages and are only visible when the user of the site leaves the site. It is a type of window that comes up behind the browser window of a webpage that a user has visited and are used quite extensively in web advertising.
Answer:
$2,424
Explanation:
Depreciation for a rental property is calculated following a straight line depreciation method for 27.5 years.
First we must calculate the rental's house basis excluding land value:
$135,000 - $35,000 = $100,000
Then we divide $100,000 by 27.5 years = $3,636 per year
Now we divide by 12 months = $303 per month and multiply times 8 months = $303 x 8 = $2,424