An FI Has Assets of $800 Million and Liabilities of $740

question 109

Multiple Choice

An FI has assets of $800 million and liabilities of $740 million. If the FI bought call options on bonds with a face value of $50 million, what is the minimum amount of the stockholder's potential true net worth?

• A)$10 million.
• B)$70 million.
• C)$110 million.
• D)$790 million.
• E)$850 million.