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NEW QUESTION: 1
_________ stock generally costs more than __________ because of the additional rights its stockholders receive.
A. Non- Cumulative preferred stock, Cumulative preferred stock
B. Preferred stock, Common Stock
C. Cumulative preferred stock, Non- Cumulative preferred stock
D. Cumulative preferred stock, Cash dividends
Answer: B
NEW QUESTION: 2
Refer to the exhibit.
How many maximum hops can an ILS update traverse?
A. 0
B. 1
C. 2
D. 3
Answer: D
NEW QUESTION: 3
In mid-September, the stock of Oracle (ORCL) is selling for $25.60 a share. Ms. Hedge owns shares of
Oracle and buys a put option on the stock with a strike price of $27 that expires in October for $2.20 per
optioned share. Just prior to expiration, Oracle's stock is selling for $29. Ms. Hedge should:
A. let her option expire worthless.
B. exercise her option and sell Oracle for $27 a share.
C. exercise her option and buy more shares of Oracle for $27 a share.
D. exercise her option and sell Oracle for $29 a share.
Answer: A
Explanation:
If Ms. Hedge owns a put option on Oracle with a strike price of $27 and Oracle's price is $29
just prior to expiration, she should let her option expire worthless. Her put option gives her the right to sell
Oracle for $27. If she wants to sell her existing shares of Oracle, she is better off doing so on the open
market and receiving $29 a share for them.
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