=8. The common shares of Fortune Brands, Inc. (FO), owner of many brands including Knob Creek bourbons,
Question:
=8. The common shares of Fortune Brands, Inc. (FO), owner of many brands including Knob Creek bourbons, Wild Horse wines, Titleist golf products, and Swingline staplers, are trading today on the NYSE for $80 a share. You have employee stock options to purchase 1,000 FO shares for $75 per share. The options mature in three years. The annualized volatility of FO stock over the past 100 days has been 35 percent. The company's current dividend yield is 1. 5 percent, and the interest rate is 6 percent. (Assume the options are American options that may be exercised at any time up to the maturity date.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: