$1.$ What is an option?

$2.$ How do the following factors affect the call price? Assuming the value of each of the following increases, what would be the effect on the value of the call $($increase or decrease$)?$

Stock price

Exercise price

Time to maturity

Volatility

$3.$ How does an option$$s intrinsic value differ from its time value?

$4.$ Is the MRAM growth option comparable to a financial option? If so$,$ how?

$5.$ How much would the MRAM growth option have to be worth to make it worthwhile to invest in RamSync?

$6.$ With the data as given, what is the value of the MRAM growth option?

$7.$ Assuming you believe volatility can affect the value of the call option, what would be the value of the MRAM growth option if the expected volatility were $50\%?$ How about $75\%?$ In each case, assume all other values remain the unchanged.

Value of Call Option with $50\%$ volatility

Value of Call Option with $75\%$ volatility

$8.$ What would be the value of the MRAM growth option if the expected value of the MRAM market was $$300$ million? $$120$ million? $$100$ million? In each case, assume all other values remain the unchanged.

Value of Call if value of MRAM market $=$ $$300$

Value of Call if value of MRAM market $=$ $$120$

Value of Call if value of MRAM market $=$ $$100$