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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