Which Option Price(s)will Increase When the Dividend Yield Increases

question 3

Multiple Choice

Which option price(s) will increase when the dividend yield increases?

• A)both the call and put
• B)call only
• C)put only
• D)neither the call nor the put
• E)Answer cannot be determined from the information provided.

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Definitions:

Bond Proceeds

The funds received by an issuer from the sale of bonds, typically used for financing long-term investments.

Special Assessment

A charge levied by local governments on property owners for improvements that benefit their properties, such as sidewalks or sewers.

Government-Wide Financial Statements

Comprehensive financial reports that provide an overview of a government's net position and financial activities, differentiating between governmental and business-type activities.

Intra-Activity Transactions

Transactions that occur between divisions within the same company, affecting only internal accounts without impacting the company's financial position to external parties.