Which One of the Following Statements Is True

Multiple Choice

Which one of the following statements is true?

A) Common stock acts like a call option on the assets of a levered firm.
B) Preferred stock is similar to a put option.
C) Employee stock options are similar to puts on the assets of a firm.
D) The deposit you pay to reserve a banquet hall for a particular date is a put option.
E) The option to abandon a project once it has commenced has no value.