A and B are two 4 bit numbers. Range of both A and B is 0-15 (in decimal). Hence, if we write it like this:
A: 0 ,1,2,3,4,5,6,7,8,9,10,11,12,13,14,15 and
B: 0 ,1,2,3,4,5,6,7,8,9,10,11,12,13,14,15
For each number in row A, how many numbers in row B are less than that number? For example, 1 in row A is less than only 0 of row B. Similarly, 4 of row A is less than 0,1,2,3 of row B. So what is the total number of numbers for which every number in row A is less than some number of row B? It is simply, 1+2+3+4+...+15=15*16/2=120. Hence option (A)
P.S. : I hate remembering non-standard pesky formulas.