Since 1973 "Dirty Floats" Have Been Required Because

question 68

Multiple Choice

Since 1973 "dirty floats" have been required because

• A)PPP has not held.
• B)high inflation countries have stronger currencies than countries with low inflation.
• C)countries are not cooperating as much as original theorists predicted.
• D)in the short run,monetary and fiscal policy only affects the autonomous home economy.
• E)countries with a floating exchange rate have laissez-faire economies.

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Definitions:

Exercise Price

The cost at which an option's holder may purchase (if it's a call option) or sell (if it's a put option) the asset underneath.

Time To Expiration

The remaining period until an option contract or other derivative expires, after which it becomes worthless.

Stock Price

The cost of purchasing a share of a company, determined by the supply and demand in the stock market.

Time Value

The concept in finance that money available now is worth more than the same amount in the future due to its potential earning capacity.