Question 8 5 pts Mr.X is a major shareholder of a leveraged company A, holding 25% of the total shares. Mr. X is also a major debtholder of company A, holding 25% of the total debt. All the debt of company A will mature in one year. If at that time the value of the company is greater than the face value of the debt, company A will pay off the debt. If the value of the company is less than the face value of the debt, company will declare bankruptcy and the debtholders will own the company. Suppose V is the value of the company at the end of one year and D is the face value of the debt. a) Express Mr. X's positions (share holding and debt holding separately) in terms of option on the value of company A. (2 marks) b) What is Mr. X's aggregate position (share holding and debt holding together)? (1 mark) c) What is the delta of Mr. X's aggregate position? Why? (2 marks) 15C SA