Question $24$

In general, when are option premia the lowest?

When stock prices are at the strike price.

When market$/$stock volatility is high.

When market$/$stock volatility is low.

When the strike is at the futures price.

When futures prices are high.

None of these answers is a general rule.

Question $25$

Compute the reserve rate required for $1\mathrm{.}5$ million dollar expansion of the money supply due

to a $135,739$ dollar deposit. $($Your answer should be in percentage terms, e$.$g$.8\mathrm{.}1\%)$