You are the manager and sole equity owner of a highly leveraged company. All the debt will mature in one year from today. The face value of the total debt is X = $100 million. If at the maturity time the company value is greater than the face value of the debt, you will pay off the debt. If the company value is less than the face value of the debt, you will declare bankruptcy, and the debt holders will own the company.

Calculate the debt holders value at the maturity time for each given company value in the table below (Table B). Plot the debt holders value as a function of the company value at the maturity time. Is the debt holders value the payoff of some option strategy involved with a put on the company value? What is the strategy?

Company Value ($ Million)	Your Equity Value ($ Million)
20	?
40	?
60	?
80	?
100	?
120	?
140	?
160	?
180	?