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StangWay Corp. stock is trading for $25 per share. StangWay has 20 million shares outstanding and a market debt-equity ratio of 0.57. StangWay's debt is

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StangWay Corp. stock is trading for $25 per share. StangWay has 20 million shares outstanding and a market debt-equity ratio of 0.57. StangWay's debt is zero coupon debt with a 5-year maturity and a yield to maturity of 9% EAR (effective annual rate). a. Describe StangWay's equity as a call option. What is the maturity of the call option? What is the market value of the asset underlying this call option? What is the strike price of this call option? b. Describe StangWay's debt using a call option. c. Describe StangWay's debt using a put option. StangWay Corp. stock is trading for $25 per share. StangWay has 20 million shares outstanding and a market debt-equity ratio of 0.57. StangWay's debt is zero coupon debt with a 5-year maturity and a yield to maturity of 9% EAR (effective annual rate). a. Describe StangWay's equity as a call option. What is the maturity of the call option? What is the market value of the asset underlying this call option? What is the strike price of this call option? b. Describe StangWay's debt using a call option. c. Describe StangWay's debt using a put option

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