Table 91 -Refer to Table 9

question 73

Multiple Choice

Table 9.1
$$\begin{array}{l}\text { Table } 9.1\\\begin{array} { c c } \begin{array} { c } \text { Disposable } \\\text { Income } ( \$ ) \end{array} & \text { Consumption } ( \$ ) \\\hline 1,000 & 800 \\1,100 & 880 \\1,200 & 960 \\1,300 & 1,040 \\1,400 & 1,120\end{array}\end{array}$$
-Refer to Table 9.1, which shows the disposable income and consumption of a household. Saving _____

• A) decreases as disposable income increases.
• B) decreases as disposable income decreases.
• C) remains constant as disposable income increases.
• D) is negative at a disposable income of $1,000.
• E) is negative at a disposable income of $1,400.

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Definitions:

Strike Price

The price at which the holder of an option contract has the right to buy or sell the underlying asset.

Underlying Stock

The stock on which a derivative instrument, such as an option or future, is based.

Implied Volatility

A measure of the market's forecast of a likely movement in a security's price and is used to price options contracts.

Call Options

Financial derivatives that give the holder the right, but not the obligation, to buy an asset at a specified price within a specific timeframe.