If the Amount of Money in Circulation Is $50 Million

question 19

Multiple Choice

If the amount of money in circulation is $50 million and nominal GDP is $150 million,what is the velocity of money?

• A)0.33
• B)2
• C)3
• D)5

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Definitions:

Option Value

The inherent value of an option contract, determined by factors like the underlying asset's price, the strike price, and the time until expiration.

Gamma

The curvature of an option pricing function (as a function of the value of the underlying asset).

Option Price

The price at which the holder of an options contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset or security.

Hedge Ratio

A ratio used in hedging that compares the value of a position protected through a hedge with the size of the entire position itself.