Use the Table Below to Answer the Following Question

question 92

Multiple Choice

Use the table below to answer the following question.
Table 2.2.1

-Refer to Table 2.2.1.Marginal benefit from food crops

• A)equals the marginal cost of food crops.
• B)remains constant as the quantity of food crops increases from 1 tonne a day to 2 tonnes a day.
• C)cannot be calculated from the table.
• D)increases as the quantity of food crops increases from 1 tonne a day to 2 tonnes a day.
• E)equals 70 barrels of ethanol.

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Definitions:

Traded

The act of buying or selling securities, commodities, or other financial instruments on financial markets.

Put-Call Parity

A fundamental principle in options pricing that establishes a specific relationship between the prices of European put and call options with the same strike price and expiration date.

European Put Option

A financial contract that gives the holder the right, but not the obligation, to sell an underlying asset at a specified price on the expiration date.

Exercise Price

The price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying security.