Amazon.com granted a friend of mine 500 employee stock options (ESO) on April, 11th, 2011 when she was hired at the firm. The options granted have a ten-year maturity, the exercise price was set to equal the stock price when the options were granted ($184.04/share), the market rate on a 10-year Treasury Bond on April 11th, 2011 was 2.98%/year, and an estimate of the standard deviation of Amazons stock returns at that time was 40%/year. What was the total value of my friends options when they were granted in April of 2011 (assume the options are fully vested when issued)? What is the value of these 500 options today assuming that currently an estimate of the standard deviation of Amazons stock returns is 30%/year? What were the factors that caused the value to change (discuss each factor individually including the directional affect (+ or -) on the options value)?