Eli plc has 1,000,000 shares outstanding. The company has 500,000 zero-coupon bonds outstanding with face value of 100 each and 1 year to maturity. The riskless rate of interest is 2%. If the value of the company is 80m and its volatility is 20%, what, according to the contingent claims approach, is the value of Eli plcs equity?

a. 50m

b. 31.02m

c. 30.05m

d. 130m

e. None of the above