In relating stockholder value in terms of put options, the stockholders own the firm, they owe promised payments to the bondholders, and they have bought a put on the firm's assets with an exercise price equal to the promised payment to the bondholders. If the firm's cash flow is less than these promised payments:

A. the put is in-the-money, is exercised, and the stockholders retain ownership.

B. the put is out-of-the-money, is not exercised, and the stockholders retain ownership.

C. the put is in-the-money, is exercised, and the stockholders walk away from their promise to the bondholders.

D. the put is out-of-the-money, is exercised, and the stockholders retain ownership.