Question: Question 26 (1 point) Historically the stock price of Company A has experienced low volatility because it is a dominant company is a stable, mature

Question 26 (1 point) Historically the stock price of Company "A" has experienced low volatility because it is a dominant company is a stable, mature industry. The stock price of Company "B" has historically been quite volatile since operates in the very cylical mining sector. Company "C"'s stock price has experienced moderate volatility. Suppose the current stock price of all 3 companies is currently $20 and you are considering buying 3 month call options on each of these companies at a strike price of $23. Ignoring any other considerations, how would the call options rank in order of price, from highest to lowest? a) Option B/Option A/Option C. b) Option A/Option C/Option B. Option C/Option A/Option B. d) Option B/Option C/Option A. Question 27 (1 point) RES Company declared a rights offering whereby shareholders were granted 1 right for every 1 common share held. One right is required to buy one new RES common share at a subscription price of $5.50 per share. RES common shares are trading at $6. What is the current intrinsic value of each right? a) $0.00 b) $0.50 c) $6.00 d) $5.50 Question 28 (1 point) PIC.COLLAGE

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