You Can Realize the Same Value as That Derived from Share

question 64

Multiple Choice

You can realize the same value as that derived from share ownership if you:

• A)sell a put option and invest at the risk-free rate of return.
• B)buy a call option and write a put option on a share and also lend out funds at the risk-free
• Rate.
• C)sell a put and buy a call on a share as well as invest at the risk-free rate of return.
• D)lend out funds at the risk-free rate of return and sell a put option on the share.
• E)borrow funds at the risk-free rate of return and invest the proceeds in equivalent amounts
• Of put and call options.

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Definitions:

Liquidity Ratios

Financial metrics used to determine a company's ability to pay off its short-term debts with its liquid assets, critical for assessing financial health.

Asset Management Ratios

Financial metrics that assess how efficiently a company is using its assets to generate revenue, including turnover ratios for receivables, inventory, and assets.

Leverage Ratios

Financial metrics used to assess the degree of debt in a company's capital structure and its ability to meet financial obligations.

Inventory Turnover

A measure of how quickly a company sells and replaces its stock of goods within a given period.