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Question
From the lender's point of view, debt can be evaluated as
A. writing a call option on the borrower's assets with the exercise price equal to the face value of the debt.
B. buying a call option on the borrower's liabilities with the exercise price equal to the market value of the debt.
C. buying a put option on the borrower's assets with the exercise price equal to the face value of the debt.
D. writing a put option on the borrower's assets with the exercise price equal to the face value of the debt.
E. writing a put option on the borrower's liabilities with the exercise price equal to the market value of the debt.
Answer
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