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Author Question: Continuing with the power plant from the previous question, suppose instead the price of coal next ... (Read 57 times)

KWilfred

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on: Jul 1, 2018
Continuing with the power plant from the previous question, suppose instead the price of coal next month could be 54 or 66 (with equal probability). Now how much would it be willing to pay for an option to buy a ton of coal oil next month at today's price?
 a. 5
  b. 4
  c. 3
  d. 0

Question 2

Empirical research indicates that the expansion of Medicaid has led to a number of unintended consequences including
 a. an increase in the incidence of low-birth weight babies among participants.
  b. fewer pregnant women seeking prenatal care.
  c. an increase in the birthrate among the eligible population.
  d. all of the above.


irishcancer18

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Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

C


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