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For every positive net present value project that a firm undertakes, the equity in the firm will increase the most if the delta of the

For every positive net present value project that a firm undertakes, the equity in the firm will increase the most if the delta of the call option on the firm's assets is:

Multiple Choice

  • between zero and minus one.

  • equal to minus one.

    Incorrect
  • equal to zero.

  • between zero and one.

  • equal to one.

    Correct

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