The debt holders a corporation essentially hold a call option on the value of the firm's assets.

Name: The debt holders a corporation essentially hold a call option on the value of the firm's assets.
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Debt holders of a corporation essentially hold a put option on the value of the firm's assets, as they can choose to sell their claim back to the company (or in bankruptcy, have priority claim) if the firm's assets fall below the value of the debt.

The Debt Holders a Corporation Essentially Hold a Call Option