Based on the Quantity Equation,if M = 8,000,P = 3,and

question 98

Multiple Choice

Based on the quantity equation,if M = 8,000,P = 3,and Y = 12,000,then V =

• A)0.33.
• B)2.0.
• C)4.5.
• D)0.5.

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Definitions:

Time Value

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

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business.

Put Option

The right to sell an asset at a specified exercise price on or before a specified expiration date.

At The Money

The option’s exercise price and the price of the underlying asset are equal.