Why must care be taken when comparing a firm's share price to its operating income?
A) Both share price and operating income are related to the whole firm.
B) Share price is a quantity related to the entire firm, while operating income is an amount that is related solely to equity holders.
C) Both share price and operating income are related solely to equity holders.
D) Share price is a quantity related to equity holders, while operating income is an amount that is related to the whole firm.
Answer: D
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Assume S = $63, K = 60, div = 0, r = 0.04, ? = 0.35, and 90 days until expiration. What is the premium on a knock-in call option with an up-and-in barrier of $65?
A) $1.96 B) $2.06 C) $2.16 D) $2.26
The utilitarian approach to ethics holds the best alternative is the one that provides the greatest good and the least harm for the greatest number, although individuals may suffer as a result
Indicate whether the statement is true or false