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 $25 and some with an exercise price of $35. All options expire in 3 months. Which of the following best describes the value of these options? 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. Ob. The options with the $25 exercise price will sell for less than the options with the $35 exercise price. Oc. The options with the $25 exercise price have an exercise value greater than $5. Od. The options with the $35 exercise price have an exercise value greater than $0. e. The options with the $25 exercise price will sell for $5. QUESTION 8 b. A commercial bank recognizes that its net income suffers whenever interest rates increase. Which of the following strategies would protect the bank against rising interest rates? a. Buying inverse floaters. Entering into an interest rate swap where the bank receives a fixed payment stream, and in return agrees to make payments that float with market interest rates C. Purchase principal only (PO) strips that decline in value whenever interest rates rise d. Enter into a short hedge where the bank agrees to sell interest rate futures. e. Sell some of the bank's floating-rate loans and use the proceeds to make fixed-rate loans