You Are a Gold Producer and Have Noticed That the Value

question 38

Multiple Choice

You are a gold producer and have noticed that the value of your business may increase even though the price of gold falls.Your explanation for this phenomenon is

• A) that the relationship between the value of future cash flows and interest rates is positive.
• B) that increased risk may increase the real option value of the firm.
• C) that cheaper gold prices are good for the economy and that must be good for the firm.
• D) none of the above

---

Definitions:

Sunlight

The natural light emitted by the Sun, which is a primary energy source for Earth's climate system and necessary for photosynthesis in plants.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, and couples this electron transfer with the transfer of protons across a membrane.

Objective C

The programming language most often used to program applications to run under OS X.