GMAC has the right to buy back the securities anytime it wishes by paying $10,000 (this is

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GMAC has the right to buy back the securities anytime it wishes by paying $10,000 (this is a term of this particular deal). What impact does this feature have on the desirability of this security as an investment?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2023 01:02 PM

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GMAC has the right to buy back the securities anytime it wishes by paying $10,000 (this is

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The feature you described where GMAC has the right to buy back the securities at a fixed price of 10000 at any time is known as a call option or a cal...View the full answer

Fundamentals Of Corporate Finance

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