Assume the price St of ZM at time t satisfies the log-normal model with volatility 16% and expected rate of return 10%. The spot price is $40. The risk-free rate is 5%. Portfolio Y has the following payoff in 2 years: the payoff is $50 if the price of IBM in 2 years is less than $30 and, the payoff is $25 if the price of IBM is 2 years is more than $30. Compute today's price of Portfolio Y.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Whats the answer choices, but a fiscal policy is the means by which the government adjusts its spending limit and tax rates to monitor and influence a nation's economy.