You own share 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 shareholders 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
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