Multiple Choice
You own stock in a firm that has a pure discount loan due in six months. The loan has a face value of $50,000. The assets of the firm are currently worth $62,000. The stockholders in this firm basically own a _____ option on the assets of the firm with a strike price of:
A) Put; $62,000.
B) Put; $50,000.
C) Warrant; $62,000.
D) Call; $62,000.
E) Call; $50,000.
Correct Answer:
Verified
Correct Answer:
Verified
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