A treasury manager expects the price of a commodity to be highly volatile between the time of option purchase and exercise. Which option style would provide the greatest flexibility?

• A.Cayman Style
• B.European Style
• C.American Style
• D.Bermuda Style

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XYZ Company has decided to transition the responsibility for its hedging activities from the local offices to the head office; however, the local offices will continue to choose their own depository banks. Under the new structure, XYZ's treasury operations will be:

• A.decentralized.
• B.shared service center.
• C.combined.
• D.centralized.

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A company plans to issue additional equity within the next 12 months but needs to issue debt at a low interest rate now. Which of the following instruments would BEST meet this objective?

• A.Private placement issue
• B.Convertible bonds
• C.Subordinated debentures
• D.Preferred stock

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The auditors of a private college are examining and auditing the college's financial statements. The statements are not presented in accordance with GAAP. What should the auditors do?

• A.Base their opinion on GASB standards.
• B.Issue a standard unqualified opinion.
• C.Not render an opinion.
• D.Issue an adverse opinion.

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A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership. To prevent this, which of the following strategies should the company employ?

• A.Stagger the election of its directors.
• B.Grant shareowners preemptive rights for new shares.
• C.Give shareowners cumulative voting rights.
• D.Allow shareowners to vote by proxy.

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