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1. What are the five variables that affect the value of an option, and how do changes in each of these variables affect the value of a call option?2. What does the seller of a put option hope will happen?3. What is the value of a call option or a put option if the stock price is zero? What if the stock price is extremely high (relative to the strike price)?4. List and describe four different types of real options that are associated with investment projects.5. How are options related to the agency costs of debt and equity?

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