If the Price Elasticity of Demand Is 2

question 35

Multiple Choice

If the price elasticity of demand is 2.7, then price is relatively:

• A) absolute.
• B) unit elastic.
• C) inelastic.
• D) elastic.

Learn the concept of intrinsic value and time value in options.

Comprehend the Black-Scholes model and its application to option pricing.

Understand the put-call parity and its implications in financial markets.

Recognize factors affecting option pricing such as volatility and time decay.