You purchase 18 call option contracts with a strike price of $100 and a premium of $2.85. Assume the stock price at expiration is $112.00.

a. What is your dollar profit? (Do not round intermediate calculations.)

b. What is your dollar profit if the stock price is $97.95? (A negative value should be indicated by a minus sign. Do not round intermediate calculations.)

"In 1980 your income was $30,000 and the Consumer Price Index (CPI) was 100. In 1990 you income was $45,000 and the CPI stood at 150. Which of the following is correct?"

Question 9

1. In the Circular Flow Model firms are defined as those economic units that

   		buy products in the product markets and sell resources in the resource markets.
   		sell products in the product markets and buy resources in the resource markets.
   		fit the model of a typical corporation.
   		borrow money in the credit markets for purposes of consumption.

Personal Income (PI) is equal to

The GDP may be an inaccurate measure of the economy's true performance. Which of the following may be responsible for this inaccuracy?

The unemployment caused by an economic recession is called

The unemployment rate statistic published by the Bureau of Labor Statistics may underestimate the magnitude of the unemployment problem in the economy because

Underemployment includes the following:

Which of the following is NOT a problem in using economic statistics?

You buy a call with a strike price of $100 on stock that you have shorted at $100 (this is a “protective call”). What are the expiration date profits to this position for stock prices of $90, $95, $100, $105, and $110 if the call premium is $6.50? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your call profit and net profit answers to 2 decimal places and round your other answers to the nearest whole number.)

Stock Price Short Profit   Call Payoff Call Profit Net Profit

$90 _________ _________ ________ ________

$95 _________ _________ ________ ________

$100 _________ _________ ________ ________

$105 _________ ________ ________ ________

$110 ________ ________ ________ ________

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Suppose you write 36 call option contracts with a $80 strike. The premium is $4.33. Evaluate your potential gains and losses at option expiration for stock prices of $70, $80, and $90. (Input all amounts as positive values. Do not round intermediate calculations.)

At stock price of $70, the _______ is _______

At stock price of $80, the _______ is _______

At stock price of $90, the _______ is _______

If Blue country uses it resources to produce q-tips, it can produce 100 units. For the same resources, Blue country could choose to produce 25 units of pens. For Green country, it is either 90 units of q-tips or 30 units of pens. Alright, first of all, who has the absolute advantage in q-tips, pens? Who has the comparative advantage in q-tips, pens? Should this countries trade? If so, at what “price” range?

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 27,000, $18 par, common shares. The market price of the common stock is $47 on this date.

Required:
1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

In a random sample of 200 couples, the wife was taller than the husband in only 10 couples.

Construct a 99% confidence interval for the proportion of couples where the wife is taller

Aji and Mustapha both obey the two-period model of consumption. Aji earns $100 in the first period and $100 in the second period. Mustapha earns nothing in the first period and $210 in the second period. Both of them can borrow or lend at the interest rate r.

1. You observe both Aji & Mustapha consuming $100 in the first period and $100 in the second period. What is the interest rate r?
2. Suppose the interest rate increases. In a clearly labeled diagram, what will happen to Aji’s consumption in the first period? Is Aji better off or worse off than before the interest rate? (Hint: what is the substitution effect?)
3. In a clearly labeled diagram, what will happen to Mustapha’s consumption in the first period when the interest rate increase? Is Mustapha better off or worse off than before the interest rate?

1. Market demand is given as Q^d = 200 – 3P. Market supply is given as Q^s = 2P + 100. In a perfectly competitive equilibrium, what will be price and quantity?
   1. Price will be $20 and quantity will be 140.
   2. Price will be $50 and quantity will be 260.
   3. Price will be $100 and quantity will be 300.
   4. Price will be $140 and quantity will be 380.

Ghoulardi died in 2019. Her gross estate was worth $20,000,000. $5,000,000 went directly to her husband. $500,000 went to her church. Her funeral and all properly deductible liabilities of the estate totaled $100,000. Her post-1976 cumulative taxable gifts totaled $800,000; the related estate and gift tax deemed paid on cumulative gifts was $50,000. No estate taxes were paid at the state level.

a. Calculate her final estate tax liability.

b. How much income does her husband report in his personal tax return [Form 1040] from the bequest to him?