Which One of the Following Statements Is Correct

question 157

Multiple Choice

Which one of the following statements is correct?

• A) A callable bond allows the owner to force the issuer to repurchase the bond during some fixed time period.
• B) Equity in a leveraged firm is effectively a put option on the firm's assets.
• C) A warrant is similar to insurance.
• D) A loan guaranty is similar to a call option.
• E) An overallotment option is effectively a call option granted to the underwriter.

---

Definitions:

Minimal

Pertaining to the least possible amount, degree, or size; often used to describe interventions or changes that are very small but still significant.

Speech Accommodation Theory

Modification of speech style to the context (e.g., listener, situation) of a face-to-face interindividual conversation.

Convergence and Divergence

In communication, convergence refers to adapting one's speech style to match others, while divergence is altering it to differentiate oneself.

Non-Verbal Behaviour

Communication without words, including facial expressions, body language, gestures, and other physical cues.