Multiple Choice
Equity holders in a leveraged firm have
A) A long put option to sell the firm's assets to the bond holders.
B) A long call option on the firm's assets,bought from the bond holders.
C) A short call option on the firm's assets,sold to the bond holders.
D) A short put option on the firm's assets,sold to the bond holders.
Correct Answer:
Verified
Correct Answer:
Verified
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