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

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.