Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Find out more

Basic Question 4 of 11

According to the option analogy, owning a company's debt is equivalent to:

A. owning a risky debt and selling a European put option.
B. owning a riskless debt and selling a European put option.
C. owning a European put option.
Check Answer Previous Q Next Q Print

User Contributed Comments 0

You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

explain structural and reduced-form models of corporate credit risk, including assumptions, strengths, and weaknesses;

CFA® 2025 Level II Curriculum, Volume 4, Module 29.