With the Development of Modern Option Pricing Methods,the Accounting Principles

question 41

Multiple Choice

With the development of modern option pricing methods,the Accounting Principles Board would probably have reached the conclusion today that the conversion feature of convertible bonds

• A)has no value.
• B)has value.
• C)has value,but should be ignored.
• D)does not lend itself to these option pricing models.

Understand the inductive generalizations implied by arguments by analogy.

Identify possible fallacies in arguments by analogy.

Evaluate the relevance of specific connecting terms in forming strong analogical arguments.

Understand the role of context and shared properties in evaluating analogies.