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.
Correct Answer:
Verified
Correct Answer:
Verified
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