25. Consider a firm with $1 million in total face value zero-coupon bonds outstanding that mature in a year. The market value of the assets of the firm is $1.8 million. The equity in this firm is equivalent to a:
a. portfolio invested in $1 million face value risk-free debt and a call option on the assets of the firm with a strike price of $1 millionb. portfolio consisting of the assets of the firm, a $1 million face value risk-free debt to bondholders, and a call option on the assets of the firm with a strike price of $1 millionc. portfolio consisting of the assets of the firm, a $1 million face value risky debt to bondholders, and a call option on the assets of the firm with a strike price of $1 milliond. portfolio consisting of the assets of the firm, a $1 million face value risk-free debt to bondholders, and a put option on the assets of the firm with a strike price of $1 millione. put option on the assets of the firm with a strike price of $1 million