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StangWay Corp. stock is trading for $27 per share. StangWay has 18 million thares outstanding and a market debt-equaty ratio or 0.57. 5 tang Way/s

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StangWay Corp. stock is trading for $27 per share. StangWay has 18 million thares outstanding and a market debt-equaty ratio or 0.57. 5 tang Way/s debtise zero coupon debt with a 5 -year maturity. and a yield to maturity of 11% EAR (ellective annual rate). a. Describe StangWay's equity as a call opton. What is the maturity of the cal option? What is the market value of the asset underlying thit cal option? What is the strike price of this call cotion? b. Describe stangWay's debt using a cal option. c. Doscribo Stanghay's debt using a put option. a. Describe stang'Way's equity as a call opton. What is the maturty of the cat optian? What is the marknt value of the asset undeting this cal option? What is the atrase ofice of this cal opton? The maturity of the cail option is years. (Round to the nearest integer.)

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