BLW Corporation Is Considering the Terms to Be Set on the Options

question 16

Multiple Choice

BLW Corporation is considering the terms to be set on the options it plans to issue to its executives.Which of the following actions would decrease the value of the options, other things held constant?

• A) The exercise price of the option is increased.
• B) The life of the option is increased, i.e., the time until it expires is lengthened.
• C) The Federal Reserve takes actions that increase the risk-free rate.
• D) BLW's stock price becomes more risky (higher variance).
• E) BLW's stock price suddenly increases.

Recognize the necessity for presentations to be clear, concise, consistent, and fully functional.

Appreciate the significance of visual aesthetics and audience engagement in presentations.

Identify different speaking methods and their impacts on audience interaction.

Know how to include essential information for audience convenience and engagement in presentations.

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Definitions:

Parallel Resonant Circuits

Circuits where components are connected in parallel, bringing the circuit to resonance at a specific frequency where the inductive and capacitive reactances are equal in magnitude but opposite in phase.

Q

In electrical and electronic engineering, Q or quality factor refers to the measure of the efficiency of a reactive component, such as an inductor or capacitor, representing the ratio of stored vs. dissipated energy per cycle.

Voltage

The difference in electric potential between two points in a circuit, measured in volts.

RLC Parallel Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in parallel, used to analyze resonance and filtering applications.