1. Why are firms likely to prefer internally generated equity to issuing new shares of common? Identify and briefly explain two reasons.
2. Four major trends affecting world trade in the early 21st century are a gradual decline in economic protectionism exercised by individual countries, formal integration and free trade among nations, the emergence of networked global marketspace, and:
3. With aid of payoff diagrams explain carefully the difference between selling a call option and buying a put option.