5.Which one of the following will decrease the value of an American call option?

	a.	A decrease in the value of the underlying security.
	b.	An increase in the risk-free rate.
	c.	An increase in the price volatility of the underlying asset.
	d.	A decrease in the exercise price.

6.Which one of the following statements concerning warrants is correct?

	a.	Shares are transferred from one shareholder to another when a warrant is exercised.
	b.	Warrants generally have very short maturity periods.
	c.	Owning a warrant is the same as selling a call option.
	d.	When a warrant is exercised, the number of outstanding shares increases.

7.Black Teas recently acquired Green Teas in a transaction that had a net present value of $1.23 million. The $1.23 million is referred to as:

	a.	The consolidation effect.
	b.	The agency effect.
	c.	Synergy.
	d.	The consolidating value.

8.Global Distributors has decided to sell its manufacturing operations and concentrate solely on its global distribution operations. This sale is referred to as a(n):

	a.	Restructuring.
	b.	Liquidation.
	c.	Allocation.
	d.	Divestiture.