In a financial statement of the firm, put and call options ________.
A) determine cash management policy
B) influence the capital structure decision
C) affect bond financing
D) have no influence

Question

Quizplus · Accepted Answer

Put and call options do not have a direct impact on the financial statements of the firm, therefore they have no influence on cash management policy, capital structure decision, or bond financing. However, the value of these options may be included as part of the firm's total assets or liabilities in the financial statements.

In a Financial Statement of the Firm, Put and Call