34) s0 8 your family has operated a business that produces lawn movwers, Over the as he industy har pgresand new mass production techniques have been dvelopod However, your fim cannot affond this new techsology, nor can you compete anint those fims that can. Thus, the family has decided to close its faceility at the end of the vear Which one of the following describes the risks to which your family's fim AJ Forwand risk 8) Velatility exposure C Transactions exposures D) Eeonomic exposure D Translation risk 35) 35) The distribution of shares in a subsidiary to existing parent company stockholders is called a(nk A) spin-off B) equity carve-out C) bear hag D) split-up E) lockup transaction. 36) Firm X has a market value of $8,400 with 120 shares outstanding and a price per share oS70, Firm Y has a market value of $2,000 with 100 shares outstanding and a price per share of $20. Firm X is acquiring Firm Y by exchanging 30 of its shares for all 100 of Fim Y's shares. Assume the merger creates $400 of synergy. What will be the value of Firm X's sharcholders' stake in the merged firm? A) $9,050 36) B) $8,640 C) $8,820 D) $9,200 E) $8,080 37) Which one of the following statements is correct? A) Increasing the strike price decreases the value of a put option. B) As the standard deviation of the returns on a stock increases, the value of the put options on the stock increases C) Increasing the risk-free rate decreases the value of a call option. D) The value of a call option decreases as the time to expiration increases. E)A decrease in the risk-free rate decreases the value of a put option. 37)