38. Deeble Construction Co.'s stock is trading at $30 a share. There are also call options on the company's stock, some with an exercise price of S2 with an exercise price of $35. All options expire in 3 months. Whic following best describes the value of these options? 5 and some a. If Deeble's stock price rose by $5, the exercise value of the options with the $25 exercise price would also increase by $5 the s35 emercisth the $25 exercise price will ell for lesthan the options c. The options with the $25 exercise price have an exercise value greater d. The options with the $35 exercise price have an exercise value greater e. The options with the $25 exercise price will sell for $5 ns with than $5 than $0. 39. A 6-month put option on Makler Corp 's stock has a strike price of $45 and sells in the market for $8.90. Makler's current stock price is $41. What is the exercise value of the option a. $2.62 b. $2.92 c. $3.24 d. $3.60 e. $4.00 40. A 6-month call option on Meyers Inc.'s stock has a strike price of $45 and sells in the market for $8.25. Meyers' current stock price is $48. What is the option premium? a. $4.25 b. $4.73 c. $5.25 d. $5.78 e. The correct answer is:$ 41. The owner of a convertible bond owns, in effect, both a bond and a call option. a. True b. False 42. Preferred stockholders have priority over common stockholders with respect to dividends. S ince preferred and common stocks are equity financing, they have equal priority with respect to liquidating proceeds in the event of bankruptcy True a. b. False 43. Leasing is typically a financing decision and not a capital budgeting decision. Therefore, in a lease analysis, we are concerned simply with whether to finance the asset with a lease or with a loan. a. True b. False