A. The Principle of the Time Value of Money B

A. The Principle of the Time Value of Money B

58) __________ says to recognize the value of options contained in derivatives. A. The Options Principle B. The Principle of Comparative Advantage C. The Principle of Valuable Ideas

59) The conversion price (for a convertible security) is usually adjusted __________. A. for a new debt offering. B. for stock splits. D. all of these

C. for cash dividends

60) According to the Principle of Risk-Return Trade-Off, investors require a higher return to compensate for __________. A. less risk B. greater risk C. diversification D. lack of diversification

61) __________ says to use derivatives to pay others to take risks.