The market value of a firm's (risky debt is equal to the market value of its assets less the market value of its equity calculated from the Black-Scholes pricing model. From put-call parity, an alternative interpretation of the market value of risky debt is that it is equal to: A. Riskless discount bonds with face value equal to the book value of debt, and purchased put options on the market value of the firm's assets. B. Riskless discount bonds with face value equal to the book value of debt, and purchased put options on the book value of the firm's assets. C. Riskless discount bonds with face value equal to the book value of debt, and written put options on the market value of the firm's assets. D. Riskless discount bonds with face value equal to the book value of debt, and written put options on the book value of the firm's assets E. Riskless discount bonds with face value equal to the market value of debt. QUESTION 15 Given the following information, what is the time value of a European call option? Stock price-$18, exercise price=510, time to expiration-2 months, risk-free rate=10% continuously compounded, standard deviation=40% annually, A. $7.29 B. $8.00 C. $8.17 OD. 58.85 E. $9.68