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    Principles of Corporate Finance Study Set 3
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    Exam 21: Valuing Options
  5. Question
    If U Equals the Quantity (1 + Upside Change), Then
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If U Equals the Quantity (1 + Upside Change), Then

Question 22

Question 22

Multiple Choice

If u equals the quantity (1 + upside change) , then the quantity (1 + downside change) is equal to


A) −u.
B) −1/u.
C) 1/u.
D) 1 − u.

Correct Answer:

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