If the Price Level in Japan Is 1

question 48

Multiple Choice

If the price level in Japan is 1.0,the price level in the U.S.is 2.0,and it costs 100 Yen to buy one dollar,then the real exchange rate between the U.S.and Japan is

• A)2.
• B)10.
• C)50.
• D)100.
• E) 200.

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Definitions:

Stock Price Stable

A condition where a stock's price shows minimal volatility and maintains a relatively constant value over a period.

Long Call

An options trading strategy where an investor purchases a call option, betting that the underlying asset's price will increase.

Short Put

An options trading strategy involving the sale of put options, betting that the underlying asset will not decline below the strike price before expiration.

Option Quotes

Option quotes provide the price at which an option can be bought or sold, displaying details like the strike price, expiration date, and whether it's a call or put option.