A Share of Stock Is a ________ Option on the Value

question 40

Multiple Choice

A share of stock is a ________ option on the value of assets of the firm with a strike price equal to ________.

• A)put option,face value of debt
• B)call option,market value of equity
• C)call option,face value of debt
• D)put option,market value of equity
• E)put option,market value of debt

---

Definitions:

Schedule-induced Polydipsia

An excessive drinking behavior induced by a schedule of intermittent reinforcement, often seen in laboratory animals.

Excessive Amounts

Quantities or volumes that go beyond what is normal, necessary, or reasonable.

Concurrent Interference Theory

Suggests that interference during the consolidation of information into memory occurs when two sets of information are processed in a similar timeframe.

Nausea Inducing Substance

A substance that causes the sensation of wanting to vomit.