QUESTION 7 An option is a contract that gives its holder the right to buy or sell an asset at a predetermined price within a specified period of time. O True O False QUESTIONS If the current price of a stock is above the strike price, then an option to buy the stock is worthless and will have a zero value True False QUESTION 9 Stocks A and B have the same price and are in equilibrium, but Stock A has the higher required rate of return. Which of the following statements is CORRECT? Stock B must have a higher dividend yield than Stock A. Stock A must have a higher dividend yield than Stock B. Stock A must have both a higher dividend yield and a higher capital gains yield than Stock B. if Stock A has a lower dividend yield than Stock B, its expected capital gains yield must be higher than Stock Bs