Refer to the information provided in Figure 31.2 below to answer the question(s) that follow. 
Figure 31.2
-Refer to Figure 31.2. Suboptimal production occurs when the economy is at Point
Definitions:
Underlying Shares
Underlying Shares refer to the shares of stock that an option, future, or other derivative contract gives the holder the right, but not the obligation, to buy or sell.
Loan Securitizations
The process by which a financial institution groups various types of contractual debt such as mortgages or loans and sells them as consolidated financial instruments to investors.
Borrowers
Individuals or entities that take funds from a lender under the agreement to return the funds, typically with interest, over a set period.
Lender
An individual, a financial institution, or another entity that lends money to another party with the expectation that the money will be paid back with interest.
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