In this case, the modulation index \( \mu \) is determined from the maximum amplitude of the message signal \( A_m \) and the amplitude of the carrier wave \( A_c \). The modulation index is defined as:
\[
\mu = \frac{A_m}{A_c}
\]
Given:
- \( A_m = 20 \, \text{cm} \),
- \( A_c = 40 \, \text{cm} \),
We can substitute these values into the equation to get:
\[
\mu = \frac{20}{40} = 0.5
\]
Thus, the modulation index is \( 0.5 \), so the correct answer is (B).