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Documenti Microsoft Word ferences Mailings Review View - AE - 7. FEE 14 T A Find AaBbCcDd AaBbceDd AaBbc AaBbcc AaB 1 No Spacing Heading

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Documenti Microsoft Word ferences Mailings Review View - AE - 7. FEE 14 T A Find AaBbCcDd AaBbceDd AaBbc AaBbcc AaB 1 No Spacing Heading 1 Heading 2 e Rep ab A 1 Normal Title Change Styles hos Sele Paragraph Styles Editing Question 3 For questions 3 below, reference to the course literature is required for full credits. Source name and page number must be entered. a) What distinguishes a preference share from an "ordinary" share? (0.5p) b) What distinguishes equity financing from debt financing in terms of influence; compensation and risk in the event of bankruptcy? (1.5p) Question 4 A stockbroker has a portfolio consisting of an issued call option (exercise price 120) and an issued put option (exercise price 110). Both options refer to the same share and have the same term. Disregard the value of the premium. What is the value of the portfolio on the redemption day if the daily price is 115 SEK. Motivation of reasoning required for full score. (2 points) ED108%

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