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Q. The payoff structure of risky debt holders mimics a portfolio consisting of what? 1) A long put option 2) A long call option 3)

Q. The payoff structure of risky debt holders mimics a portfolio consisting of what?

1) A long put option

2) A long call option

3) A short put and risky debt

4) A short call and risky debt

5) None of the above

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