Explain Why the Supply of Loanable Funds Is an Upward

question 21

Essay

Explain why the supply of loanable funds is an upward sloping curve.(Why is there a graph here? It's not part of the question or answer. )

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Definitions:

Strike Price

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

Call

An option contract that gives the holder the right to purchase a stock, commodity, or other assets at a specified price within a specific time period.

Intrinsic Value

The fundamental value of a company, stock, currency, or product determined through financial analysis without reference to its market value.

March Put

An options contract giving the holder the right to sell an asset at a specified price before or on a March expiration date.