A Corporate Security Can Be Viewed as a Contingent Claim

A corporate security can be viewed as a contingent claim on the firm. This means that:

A) debt holders will receive their payoff from the firm based on their fixed claim or the firm cash flows if less than the fixed claim.
B) debt holders will receive the maximum of the firm cash flows or the fixed claim.
C) no payoff will be made unless the firms makes more than the fixed claim of the debt.
D) no debt payoff will be made if there is an equity payoff.