PLEASE LOOK AT THE ATTACHMENT FOR FINANCEHELP ME ANSWER THE FOLLOWING TRUE AND FALSE QUESTIONS

Question 1 Project A has a guaranteed payoff of $200 million, which will exactly compensate the debtholders of the firm. Project B has a 50% probability of a $400 million payoff and a 50% probability of a zero payoff. Which project do the debtholders prefer and which project do the shareholders prefer? a. Debt holders prefer B and Shareholders prefer A b. Both prefer B c. Debt holders prefer A and shareholders prefer B Question 2 How are the values N(d1) and N(-d1) related. a. They are opposites b. They sum to 1 c. N(d1) = 1/N(-d1) Question 3 In terms of pricing, what are the most important differences between warrants and call options? a. Options buying and selling create new shares b. Warrants create new shares and cause dilution of equity. c. Warrants and call options are roughly equivalent Question 4 What will create a risk-free payoff a. Buy one share of stock and short one call option b. Buy one share of stock and one put c. Buy a covered call Question 5 Which of the following is not a use of options a. b. c. d. Part of an executive compensation package Firms use options to reduce their exposure to certain types of risks Are used to create innovating trading strategies All of these are uses of options