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:

Stressful

Pertaining to or characterized by stress; causing mental or emotional strain or tension.

Personal Fetish

A specific, non-standard object or concept that an individual finds unusually attractive or sexually exciting.

Highly Intelligent

Possessing or demonstrating a very high level of intelligence, understanding, or mental capacity.

Social

Relating to society or its organization, or the interactions and relationships of individuals within a community.