Bendigo Shipping's stock is currently trading for $15 per share and the company has 50 million shares outstanding. The company's debt-to-equity ratio is 0.6 and the yield to maturity (the return) on its zero-coupon debt with a maturity of 5 years is 12%.

Which of the following best describes the company's debt using a put option?

	Long $450 million in risk-free debt and short a put option on the firm's assets with a $450 million strike price.
	Short $450 million in risk-free debt and long a put option on the firm's assets with a $450 million strike price.
	Long $450 million in risk-free debt and short a put option on the firm's assets with a $1.2 billion strike price.
	Short $450 million in risk-free debt and long a put option on the firm's assets with a $1.2 billion strike price.
	None of the above is a correct description of the company's debt using a put option.