Delta Importers Has a Pure Discount Loan with a Face

question 86

Multiple Choice

Delta Importers has a pure discount loan with a face value of $180,000 due in one year.The assets of the firm are currently worth $265,000.The shareholders in this firm basically own a _____ option on the assets of the firm with a strike price of _____.

• A)put; $180,000.
• B)put; $265,000.
• C)warrant; $265,000.
• D)call; $180,000.
• E)call; $265,000.

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Definitions:

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered on credit.

Ledger

A comprehensive collection of all accounts used by an organization, summarizing all transactions occurring within an accounting period.

Account Balances

The amount of money in a financial repository at any given moment, reflecting the net of debits and credits over time.

Documentation

Written or digital materials that provide official information or evidence regarding processes, transactions, or systems.