Which of the following represents Modigliani and Miller's second preposition with taxes on the effect of capital gearing? Select one: O A. There is no relationship between financial gearing and the WACC as there are no 'free lunch' benefits from higher gearing O B. There is a positive relationship between financial gearing and the WACC because of financial distress. O C. There is a positive relationship between financial gearing and the WACC because of the increased volatility of the ROE. O D. There is a negative relationship between financial gearing and the WACC because of the 'free lunch' effect of the tax shield A long contract requires that the investor; Select one: O A. Buy securities in the future. O B. Sell securities in the future. O C. Hedge in the future. O D. Close out his position in the future. An option allowing the owner to sell an asset at a future date is a ... Select one: O A. Call option O B. Forward option O C. Future contract O D. Put option