Multiple Choice
In the structural model,the firm's debt can be viewed as:
A) a European call option on the assets of the firm
B) a European put option on the assets of the firm
C) an American call option on the assets of the firm
D) an American put option on the assets of the firm
E) riskless debt plus shorting a European put option on the assets of the firm
Correct Answer:
Verified
Correct Answer:
Verified
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