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If You Consider Stockholders to Be the Owners of a Firm,then

Question 46

Multiple Choice

If you consider stockholders to be the owners of a firm,then those stockholders:


A) own a call option on the firm with an exercise price equal to the firm's total equity.
B) own a put option on the firm with an exercise price equal to the firm's total debt.
C) have written a put option on the firm with an exercise price equal to the firm's total equity.
D) have written a call option on the firm with an exercise price equal to the firm's total debt.
E) own a put option on the firm with an exercise price equal to the firm's total assets.

Correct Answer:

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