If, During 2011, the Republic of Sildavia Recorded a Value

question 207

Multiple Choice

If, during 2011, the Republic of Sildavia recorded a value added of $78 billion, wages of $40 billion, profits of $8 billion, and total sales of all goods and services $90 billion, the value of intermediate goods purchased during 2011 in Sildavia was:

• A) $42 billion.
• B) $30 billion.
• C) $12 billion.
• D) $4 billion.

---

Definitions:

Stock Price

The cost or price of a single share of a company's stock, determined by the supply and demand in the market.

Black-Scholes

A mathematical model used for pricing European style options, taking into account the stock price, strike price, time to expiration, risk-free rate, and volatility.

Delta

In finance, it's a ratio that compares the change in the price of an asset, usually a marketable security, to the corresponding change in the price of its derivative.

Underlying Asset

The financial asset upon which a derivative's price, such as an option or future, is based.