An Example of a Good That Is Both Rival and Excludable

question 195

Multiple Choice

An example of a good that is both rival and excludable is

• A) the defense services provided by a new stealth bomber.
• B) a pair of pants.
• C) a beautiful sunset.
• D) an uncrowded theme park such as Walt Disney World.

Describe various option strategies and their respective payoffs.

Analyze the impact of market conditions on different option strategies.

Calculate expected profits for option writers under various market scenarios.

Understand how synthetic positions can mirror the payoffs of other financial instruments.