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Write out the put-call parity formula for a firms stock, debt, and assets. How do the deter- minants of an options value impact the present
Write out the put-call parity formula for a firms stock, debt, and assets. How do the deter-
minants of an options value impact the present value of the firms financial distress costs?
Provide intuition for the direction of the impact of each of these variables.
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