Consider two firms, Thither and Yon. Both companies will either make $30 million or lose $10 million every year with equal probability. The companies' profits are perfectly negatively correlated. What are the expected aftertax profits of Thither in any year, assuming a corporate tax rate of 35% and no tax loss carry back or carry forward?

A.

$6.5 million

B.

minus$6.5

million

C.

$19.5 million

D.

$4.75 million