Use the Following Exhibit for Questions 39 and 40

question 31

Multiple Choice

Use the following Exhibit for Questions 39 and 40
ExHibiT 4 industrial Comparative Ratio Analysis, year 20xx

-based on only the leverage ratios in Exhibit 4, the company with the highest credit risk is:

• A) Company A.
• B) Company b.
• C) Company C.

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Definitions:

Strike Price

The fixed price at which the owner of an option can purchase (call) or sell (put) the underlying asset.

Option Price

Option price refers to the premium that must be paid to buy an option, which grants the holder the right, but not the obligation, to buy or sell an underlying asset at a set price.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss.

Call Option

A contractual arrangement in the realm of finance offering the buyer the privilege, though not the compulsion, to procure a share, bond, commodity, or alternate asset at a fixed price throughout a specified duration.