Question
For some of the firms securities that can be viewed as options, which of the following is most likely to be true? A) All else
For some of the firms securities that can be viewed as options, which of the following is most likely to be true? A) All else equal, the higher the companys leverage, the more valuable the companys equity as an option. B) Projects that raise the firms asset volatility will automatically increase the value of the firms equity and risky debt. C) For convertible bond, the option to convert equals to the conversion value minus the value of the equivalent straight bond without the conversion option. D) Owning a warrant is the same as selling a call option. E) If the companys bond is considered risky, the companys equity can be viewed as a put option on the companys assets.
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