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We know that a share of equity is a call option on the firm's assets. Which of the folloiwng statement is correct? O A. An
We know that a share of equity is a call option on the firm's assets". Which of the folloiwng statement is correct? O A. An equityholder is long a put option with strike price equal to the value of the debt, and long a risk-free bond with face value equal to the value of the debt. O B. An equityholder is short a put option with strike price equal to the value of the debt, and long a risk-free bond with face value equal to the value of the debt. OC. An equityholder is short a put on a share of the value of the firm's assets with the per-share value of debt as the strike price, long a share on the firm's assets, and short a loan equal to the value per-share of the debt. O D. An equityholder is long a put on a share of the value of the firm's assets with the per-share value of debt as the strike price, long a share on the firm's assets, and short a loan equal to the value per-share of the debt
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