Preferred stock is considered a hybrid security because it blends the characteristics of both debt and equity True O False When business is booming, it is generally good for shareholders if firms have borrowed money because shareholder returns will be higher with leverage than with no leverage. O True O False If an investor buys a 100 - share call option for $250 with an exercise price of $60 and the underlying price per share of the stock at expiration is $66, what is the amount of profit or loss, ignoring brokerage fees? O A. There would be a profit of $250. B. There would be a profit of $600. OC. There would be a loss of $250. OD. There would be a profit of $350. Generally, increases in leverage result in increased return and risk. O True O False For firms that are in a financial position to take a cash discount, it is advisable not to take the discount if the terms offered are 2/10 net 30. True O False