If You Consider the Equity of a Firm to Be

question 21

Multiple Choice

If you consider the equity of a firm to be an option on the firm's assets then the act of paying off debt is comparable to ________ on the assets of the firm.

• A)purchasing a put option
• B)purchasing a call option
• C)exercising an in-the-money put option
• D)exercising an in-the-money call option
• E)selling a call option

---

Definitions:

Menswear

Clothing and apparel specifically designed for men, encompassing a range of items such as suits, trousers, shirts, and footwear.

Photography Equipment

Tools, machines, and accessories used for taking photographs, such as cameras, lenses, lighting, and tripods.

Invoice

A document issued by a seller to a buyer that lists goods or services provided, the costs, and the payment terms.

Dairy Products

Foods produced from the milk of mammals, such as cheese, milk, butter, and yogurt.