A fiRm Has a Zero-Coupon Bond Issue Outstanding with a Face

A firm has a zero-coupon bond issue outstanding with a face value of $12 million, a current market value of $8 million, and a maturity date of 5 years. The risk-free rate of return is 4%. The equity in
This firm is a:

A) Put option with an exercise value of ($8 million) ×(1.04) 5.
B) Put option with an exercise value of ($12 million) ×(1.04) 5.
C) Put option with an exercise value of $8 million.
D) Call option with a strike price of $12 million.
E) Call option with a strike price of $8 million.