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Corporate bondholders could be viewed as those owning the firm assets but have written a call option on the firm assets to the equity holders.

Corporate bondholders could be viewed as those owning the firm assets but have written a call option on the firm assets to the equity holders. Alternatively, the bondholders own a default free bond and have written a put option on the firm assets. Use the put-call parity to verify that both perspectives are equivalent.

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