Homer and Teddy Are Stranded on a Desert Island

question 35

Multiple Choice

Homer and Teddy are stranded on a desert island. To feed themselves each day they can either catch fish or pick fruit. In a day, Teddy could pick 60 pieces of fruit or catch 20 fish. Homer could pick 100 pieces of fruit or catch 150 fish. Which of the following is CORRECT?

• A) Homer has a comparative advantage in catching fish and Teddy has a comparative advantage in picking fruit.
• B) Homer has a comparative advantage in picking fruit and Teddy has a comparative advantage in catching fish.
• C) Homer has a comparative advantage in both catching fish and picking fruit.
• D) Teddy has a comparative advantage in both catching fish and picking fruit.

Analyze the factors influencing option pricing, including exercise price, contract maturity, underlying stock performance, and market events.

Identify different types of options (American, European, digital, and barrier) and understand their distinct characteristics.

Calculate potential profits, losses, and breakevens for basic option trading strategies.

Recognize the advantages of exchange-traded options over OTC options.

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Definitions:

Environmental Impact Statements

Documents required by law for certain projects, detailing the potential environmental effects.

APA

The Administrative Procedure Act, which governs the process by which federal agencies develop and issue regulations.

Privacy Act

Legislation designed to protect personal information about individuals from unauthorized use, disclosure, or misuse, typically governing government agencies and organizations.

Relevant and Necessary

Criteria indicating that something must be directly connected to and important for a specific process or decision.