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MassGlass Corporation is a firm with $80 million in equity and $10 million in debt. The debt has maturity of 5 years. If we view
MassGlass Corporation is a firm with $80 million in equity and $10 million in debt. The debt has maturity of 5 years. If we view the equity of this firm as a call option, then we can evaluate this option as one whose exercise price is $_______ million, whose time to expiration is _______ years, and whose underlying asset has a value of $______ million.
A. Exercise price=
B. Expiration time is =
C. Underlying asset has a value of =
*DO NOT USE COMMA OR DOLLAR SIGN OR PERCENT SIGN IN YOUR ANSWER.
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