Use the Following Information for Questions

Use the following information for questions
Dynamic Systems, Inc.is in financial trouble.It has three types of debt: a bank loan of $400 with the highest priority, a senior debt of $100 owned by bondholders with the next highest priority, and a junior debt of $100 owned by bondholders with the lowest priority.These debts are due in one period.The firm has announced its intention to declare bankruptcy.At this stage, the creditors must choose one of two mutually exclusive restructuring plAns.plan A with which the firm's asset next period will be $450 with probability 0.8 and $250 with probability 0.2; or plan B with which the asset's value will be $600 with probability 0.4 or $100 with probability 0.4.Everybody is risk neutral, and the discount rate is zero.
-Which plan would the senior debt holders prefer?

A) A since the expected payoff is $100 vs.B with expected payoff $40.
B) A since the expected payoff is $60 vs.B with expected payoff $30.
C) B since the expected payoff is $60 vs.A with expected payoff $30.
D) B since the expected payoff is $100 vs.A with expected payoff $40.
E) Indifferent since both plans have expected payoff $40.