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BLW Corporation is considering the terms to be set on the
options it plans to issue to its executives. Which of the following actions
would decrease the value of the options, other things held constant?
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Question 2
Which of the following statements is CORRECT?
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Question 3
Suppose you believe that Florio Company's stock price is going
to decline from its current level of $82.50 sometime during the next 5
months. For $5.10 you could buy a 5-month put option giving you the
right to sell 1 share at a price of $85 per share. If you bought this option
for $5.10 and Florio's stock price actually dropped to $60, what would
your pre-tax net profit be?
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Question 4
Which of the following statements is CORRECT?
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Question 5