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The payoffs for the equity holders of a firm is most similar to: O A short position in a put option with the exercise price
The payoffs for the equity holders of a firm is most similar to: O A short position in a put option with the exercise price equal to the face value of debt and a time to expiration equal to the maturity of the debt. O A short position in a call option with the exercise price equal to the face value of debt and a time to expiration equal to the maturity of the debt. O Along position in a put option with the exercise price equal to the face value of debt and a time to expiration equal to the maturity of the debt. A long position in a call option with the exercise price equal to the face value of debt and a time to expiration equal to the maturity of the debt
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