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Question4 1 pts Which of the following statements about embedded options NOT true? O Equity can be viewed as a call option on the firm
Question4 1 pts Which of the following statements about embedded options NOT true? O Equity can be viewed as a call option on the firm value. O Risky debt can be viewed as risk-free debt minus a put position O Risky debt can be viewed as risk-free debt plus a long put position. O A convertible bond can be viewed as a straigt bond plus a call option. Question 5 1 pts Which of the following set of variables are positively related to the values of put options and negatively related to the values of call options? O Dividend and risk free rate O Dividend and strike price. O Strike price and time to maturity Volatility and time to maturity Question 6 1 pts Which of the following set of variables are positively related to the values of call options and negatively related to the values of put options? O Risk free rate and dividend. Volatility and strike price. O Risk free rate and underlying asset price. O Time to maturity and strike price
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