A Public Good

question 52

Multiple Choice

A public good:

• A)generally results in substantial negative externalities.
• B)can never be provided by a nongovernmental organization.
• C)can't be provided to one person without making it available to others as well.
• D)costs essentially nothing to produce and thus is provided by the government at a zero price.

---

Definitions:

Put Premium

The price that an investor pays for the right but not the obligation to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Long Straddle

An options trading strategy that involves purchasing both a call and a put option on the same asset with the same expiration date and strike price, betting on volatility.

Call Contract

A financial derivative agreement giving the buyer the right, but not the obligation, to buy an underlying asset at a specified price before a specified date.

Break Even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.