When a call option is exercised

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Reference no: EM131932944

1. The yield on a Treasury bill will increase if

a) the length of time to maturity decreases

b) the premium over its face amount increases

c) bond prices rise

d) the discount increases

2. When a call option is exercised

a) the firm issues new stock

b) the writer supplies the stock

c) the firm’s earnings are diluted

d) the option is converted into stock

Reference no: EM131932944

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