18. Suppose that top executives of XYZ are told they will receive at-the-money call options on 10,000
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18. Suppose that top executives of XYZ are told they will receive at-the-money call options on 10,000 shares each year for the next 3 years. When granted, the options have 5 years to maturity. XYZ’s stock price is $100, volatility is 30%, and r = 8%.
Estimate the value of this promise.
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Related Book For
Derivatives Markets Pearson New International Edition
ISBN: 978-1292021256
3rd Edition
Authors: Robert L. Mcdonald
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