54. If a firm repurchases its own stock, the A. stockholders avoid capital gains B. firm's assets are increased C. eamings per share are increased D. use of financial leverage declines 55. Open-end investment companies A. Issue new stock whenever an individual buys shares B. sell for a discount from their net asset value C. have a fixed number of shares D. is another name for real estate investment trusts 56. A call penalty (call premium) A. compensates the investor for premature retirement of the bond B. compensates the investor for subsequent increases in interest rates C. protects the investor from default D. protects the issuer from bondholders requesting payment prior to maturity 57. Selling short is selling A. borrowed securities B. small or odd lots C. in anticipation of a price increase D. when short-term interest rates fall 58. Which of the following strategies will make a profit if the stock price stays stable? A. Long call and short put B. Long call and long put C. Short call and short put D. Short call and long put