From the Lender's Point of View, Debt Can Be Evaluated

From the lender's point of view, debt can be evaluated as

A) writing a call option on the borrower's assets with the exercise price equal to the face value of the debt.
B) buying a call option on the borrower's liabilities with the exercise price equal to the market value of the debt.
C) buying a put option on the borrower's assets with the exercise price equal to the face value of the debt.
D) writing a put option on the borrower's assets with the exercise price equal to the face value of the debt.
E) writing a put option on the borrower's liabilities with the exercise price equal to the market value of the debt.