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Bondholders have a call on the firm's assets True False If you are long the option, then you can choose whether to exercise or not.
Bondholders have a call on the firm's assets True False If you are long the option, then you can choose whether to exercise or not. True False There are two calls on the same stock. Both expire in 6 months and are identical in every way except the exercise price. If Call A has an exercise price of $40 and Call B has an exercise price of $50, which call will have a higher value? Call A OA. Call B B. Cannot be determined A decrease in will decrease the price of both a call and a put on the same stock Exercise price A. Stock price B. OC. Volatility Dividends OD. Suppose you have written both a put and a call on the same stock with the same exercise price and the same expiration date (so you are short both options). You are best off if the stock price on the expiration date is Below the exercise price A. B. Equal to the exercise price Above the exercise price
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