Reference to one dollar (“small option”)
### Feasibility of buying a shekel-dollar option – During regular trading on the stock exchange, we will examine the feasibility of buying or writing a shekel-dollar option by referring to one dollar of the underlying asset (the underlying asset is $10,000). – As if we had broken down the real option into 10,000 “small options” […]
The coefficient of explanation or quality of the regression
### As we learned in Chapter 3, if we mark 5 rows instead of 2 in an estimation using Excel, we will obtain additional information about the estimation. In this chapter, we will focus on the first value that appears in the third row. This value is called ( R^2 ), and it is always […]
Issuance of warrants
### Warrants – **Issue and Rights:** – Stock exchange companies issue warrants that grant the holder the right to purchase shares or bonds at a predetermined price, called the “exercise price.” – Each option has a limited lifespan, usually between 1 and 3 years. – **Exercising the option:** – The option holder can only exercise […]
Real Estate – To the House of My Dreams
### Real estate transactions: buying or selling apartments and houses Real estate transactions, buying or selling apartments and houses, are usually the most significant transactions a person makes in their lifetime, both in terms of the financial amount of the transaction and in terms of the importance of the property. Our goal here is to […]
Test D – Question 12
### A firm with a fixed factor of production and a variable factor of production – **What is marginal product?** – The “marginal product” of workers is the amount of products added as a result of hiring the last worker, from a continuous set of workers that begins with the first worker and ends with […]
Israel’s Economy – Introduction
### Objective difficulties in collecting data in many areas Collecting and compiling raw economic data is a complex task. In light of this, the data are the result of an estimate based on samples. Since a sample is not a complete count, it does not always reflect the “true figure”. #### Example The average height […]
National Accounting – Summary
### Background – Figure 20 shows economic activity in Israel in 2002. – The data is based on rough estimates and rounded to billions of dollars. – The use of a circle allows for focus. ### Figure 20 is divided into 3 parts: #### Part I – Products originating from imports – Presents the products […]
The selected basket – another aspect
### Background 1. The derivative (derivative = slope) of an indifference curve at any point is the number of units of y that are equal in utility to 1 unit of x (each point on the indifference curve represents some composition of the basket). If, for example, the derivative is 4, this means that in […]
Compensation Variation
### Background This is a scenario in which at time B the consumer can no longer purchase product x and all of his budget is directed only to product y. In this scenario, the blockage of product x usually detracts from the benefit he derived from the budget at time A. In order to keep […]
T-Distribution – Examples
### Question 1 It is known that the number of oranges on the trees in Orchard A is normally distributed with a mean of 100 (standard deviation unknown). Following the use of new fertilizer, the claim was made that the number of oranges on the trees increased. To test the claim, a sample of nine […]