8. Suppose that one year after the ESO grant, Moonlight's share price falls to $10 because of poor business conditions. Answer the following questions. For simplicity, assume that the option will onlyr be exercised at maturity. a. What is the HHS value of the stock option grant assuming that the risk free rate and stock volatility are unchanged from the prior year? What is the new delta and how does it compare to the delta on the grant date you estimated in question 4'? b. What is the ES value if. following the decrease in the stock price, Moonlight decides to re-price the stock options with a strike price of $1G? What effect does this have on the delta compared to when the exercise price is $?5 and the share price is $10? c. What effects may there he on the incentives of executives and employees to work hard at the time of the original grant if employees expect the firm to reprise its stock options in the future after a fall in the share price'lI d. If you were a shareholder, how would you react to the nepricing