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2. You have been granted stock options on 500 shares of your employer's stock. The stock is currently selling for $26.60 and has a standard

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2. You have been granted stock options on 500 shares of your employer's stock. The stock is currently selling for $26.60 and has a standard deviation of 25 percent. The option's strike price is $25 and the time to maturity is 10 years. The risk-free rate of 1.6 percent? Assume that no dividends are paid. A. What is this type of option called? B. What is the value of each option? What is the total value of your options

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