If debt and equity can be modeled as options on the firms assets, then the strike price of these options is

a. Price of the bond

b. Value of the firm

c. Face value of debt

Under risk-neutral probability of default, a risk-neutral investor will pay __________ price for the risky asset _____ a risk-averse investor will pay under physical probability

	a.	higher than
	b.	lower than
	c.	the same as