Exercise 11.6.1 Recall our firm XYZ.com in Subsection 11.1.1. It had only two kinds of securities outstanding,

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Exercise 11.6.1 Recall our firm XYZ.com in Subsection 11.1.1. It had only two kinds of securities outstanding, shares of its own common stock and bonds. Argue that the stock becomes a compound option if the bonds pay interests before maturity.

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