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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