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You own stock in a firm. The assets of the firm are currently worth $50,000. This firm has debt which is due in six months.
You own stock in a firm. The assets of the firm are currently worth $50,000. This firm has debt which is due in six months. This debt has a face value of $40,000 which is due at that time. The stockholders in this firm basically own a ... 4 on the assets of the firm ... 4 2. put option 13 warrant swap 1 call option ...with a strike price of 1 1 $ 10,000 2 2 $ 20,000 3 $ 30,000 4 $ 40,000 5 $ 50,000 6 $ 60,000 7 $ 70,000 3 4
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