1. On May 1, 2017, when the market value of Jay Ltd.'s common shares was $15 per share, the corporation had 100,000 no par value common shares issued and outstanding. On this day, Jay declared and issued a 15% common stock dividend. As a result of this stock dividend, Jay's total shareholders' equity

a) increased by $225,000.

b) decreased by $225,000.

c) decreased by $15,000.

d) did not change

2. Derivative instruments

a) are settled at the date of issuance.

b) transfer financial risks.

c) transfer primary instruments.

d) require significant investments.

3. A speculators objective is to

a) take advantage of information asymmetry.

b) maximize potential returns by being exposed to greater risks.

c) reduce pre-existing risks.

d) take delivery of the underlying.