Use the Following Table to Answer the Following Questions

question 28

Multiple Choice

Use the following table to answer the following questions.
Market for Corn

-What will be the amount of government expenditure required if a price floor for corn is set at $4.50 and the government agrees to purchase the amount of disequilibrium?

• A) $202,500
• B) $45,000
• C) no government payment required
• D) $10,000
• E) $900,000

---

Definitions:

Time to Maturity

The period left until the final payment date of a financial instrument, usually a bond or a loan.

Stock Price

The current price at which a share of stock can be bought or sold on the stock market.

Implied Volatility

The market's forecast of a likely movement in a security's price, often derived from the price of options on that security.

Black-Scholes

A mathematical model used for pricing European style options and understanding the dynamics of options markets.