Wesley Corp. stock is trading for $27 per share. Wesley has 17 million shares outstanding and a market debt-equity ratio of 0.58. Wesley's debt is zero-coupon debt with a 5-year maturity and a yield to maturity of 8%. a. Describe Wesley'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 Wesley's debt using a call option. c.

(buy/short)? the firms assets and (long/short)? an equity (call/put)? option with a strike price equal to $?million

c) Describe Wesley's debt using a put option.

(buy/short)? risk-free debt with a (?) year to maturity and ($? million) face value and (long/short)? a (call/put)? option on Wesley's assets with a (?) -year maturity and a strike price of ($ million).