Webster United Movers has a $10,000 debt due in six months. If the value of the firm's assets six months from now is $8,500, the shareholders will in essence:
A) Buy a put on the firm by paying the debt.
B) Write a call on the firm by paying the debt.
C) Will allow their call option on the firm to expire.
D) Will allow their put option on the firm to expire.
E) Exercise their call option on the firm.
Correct Answer:
Verified
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