A firm has a debt of $50 million due in 3 months' time. The market value of

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A firm has a debt of $50 million due in 3 months' time. The market value of the firm's assets is currently $40 million. Assuming that the market value of assets does not change over the next 3 months, what is closest to thepayoffto debtholders from theshort put optioncomponent of their portfolio.

Posted Date: Jun 06, 2024 03:17 AM

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A firm has a debt of $50 million due in 3 months' time. The market value of

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