Because _____________, Equity in a Leveraged fiRm Can Be Considered

Because _____________, equity in a leveraged firm can be considered a call option on the firm's assets.

A) of the M&M capital structure irrelevance theorem
B) stockholders have unlimited liability for the debts of the firm
C) the possible loss on a share of common stock is limited to the initial investment
D) the bondholders can elect to "walk away" leaving the stockholders holding the bag
E) call options are more prevalent than put options