Answer:
D
Explanation:
it's D because theory is a belief off what you see and hear
Answer:
a. A Japanese firm sells its U.S. government securities to obtain funds to buy real estate in Japan.
This contributes to the demand for yen
b. A U.S. import company pays for glassware purchased from a small Japanese producer.
This contributes to the demand for yen
c. A U.S. farm cooperative receives payment from a Japanese importer of U.S. oranges.
This contributes to the supply of yen for foreign exchange
d. A U.S. pension fund uses some incoming contributions to buy equity shares of several Japanese companies through the Tokyo stock exchange.
This contributes to the demand for yen
Explanation:
Answer: C. expected change in the option premium for a small change in time to expiration
Explanation: The theta of an option is simply defined as the expected change in the option premium for a small change in time to expiration. When all other variables are kept constant, options generally will lose value the closer it gets to its maturity as such, theta of options measure the rate of decline or decay in the value of an option due to the passage of time (quantifies the risk that time poses to option buyers) and is expressed as a negative value.
There are various forms of market failure, though it is commonly defined in economics as a situation where the distribution of goods and service are conducted in an inefficient manner.
In the case illustrated in the question, the form of market failure that is taking place occurs in the nature of the exchange, which is due to bounded rationality. It is defined as condition commonly occurring in individuals where decision-making is based on making a satisfactory solution instead of an optimal one – this leads to irrational behaviors. A good example is the tipping behavior provided in the question.
Thus, the answer to the question is (D) Yes this could be considered a form of market failure. If consumers and markets were rational tips would be based on the quality of service.
Not exactly sure but I think it's D
