Question 16 3 pts Which of the following parameters must be estimated in order to use the Black-Scholes option pricing model? Rf S E 02 Ot Question 17 3 pts How does the exercise of a call option affect the firm's cash flows? It does not affect the firm's cash flows. It increases cash flow to the firm. It reduces cash flow to the firm. Question 18 3 pts Two companies, ABC and XYZ, are identical in all respects. ABC has call options outstanding. XYZ has outstanding warrants on its stock. The call options and warrants have the same exercise price and time to expiration. On exercise, why does the warrant holder gain less than the option buyer? The exercise of options leads to ownership while the exercise of warrants does not lead to ownership. Warrant holders are paid from the profits of the firm while option holder are paid by other investors. The exercise of options leads to dilution. The exercise of warrants lead to dilution