A Share of Stock Is a ________ Option on the Assets

question 79

Multiple Choice

A share of stock is a ________ option on the assets of the firm with a strike price equal to ________.

• A) put option, face value of debt
• B) call option, market value of equity
• C) call option, face value of debt
• D) put option, market value of equity

---

Definitions:

Just Noticeable Difference

The smallest change in intensity of a stimulus that can be detected by the sensory system.

Absolute Threshold

The minimum stimulus intensity required to be detectable by the senses.

Stimulus Intensity

The magnitude or strength of a stimulus, which can affect the perception and response of the sensory system to that stimulus.

Criterion

A standard or principle by which something is judged or recognized.