A stock option is said to be out of the money if:
A) the strike price equals the exercise price.
B) stock price equals the strike price.
C) strike price exceeds the stock price.
D) stock price exceeds the strike price.
Question 2
Which statement is a good argument in support of policy activism?
A) Policy lags are generally longer than the time it takes the self-correcting mechanism to work.
B) Activist policies help to ensure stability of the real interest rate.
C) Well-considered policies can assist the economy's self-correcting mechanism, thus reducing the variability of inflation and unemployment.
D) all of the above
E) none of the above
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