Question
Equity can be viewed as a call option and debt holders can be viewed as the owner of the firm who writes a call option.
Equity can be viewed as a call option and debt holders can be viewed as the owner of the firm who writes a call option. In addition, debt can be viewed as a portfolio of risk free debt and a short position in a put option. Provide a brief discussion of the agency conflicts between debt holders and equity holders from the perspective of options
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Introduction To Institutions Management And Investments
Authors: Herbert Mayo
10th International Edition
1111820643, 9781111820640
