If you consider the equity of a firm to be an option on the


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.

purchasing a put option

purchasing a call option

exercising an in-the-money call option

exercising an in-the-money put option

selling a call option

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Financial Management: If you consider the equity of a firm to be an option on the
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