The claim lenders' hold on cash flows in a company with outstanding risky debt is often thought of as:
A) holding a call option on the company's assets.
B) holding a put option on the company's assets.
C) selling a put option on the company's assets and holding a risk-free bond.
D) selling a call option on the company's asset and holding a risk-free bond.
Correct Answer:
Verified
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