The article explores the relationship between derivatives and corporate finance. By using simple arbitrage arguments, the researchers derived several model-free option price properties. They found that a European call (put) option for a non-dividend-paying asset can also be a European call (put) option for any other non-dividend-paying asset. Additionally, the time value of a European put option can be negative in some cases, and adjusting the exercise price of an option can affect its time value. The Modigliani-Miller capital structure irrelevancy proposition is a result of the put-call parity. Lastly, each of a firm's resources can be seen as both a European call option and a European put option, as well as a stock plus a forward contract.