Equity can be viewed as a call option and debt holders can, Ask an Expert

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Equity can be viewed as a call option and debt holders can be viewed as the owner of the firm who writes a call option. In addition, debt can be viewed as a portfolio of risk free debt and a short position in a put option. Provide a brief discussion of the agency conflicts between debt holders and equity holders from the perspective of options

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Financial Management, Finance

Category:- Financial Management
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