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In its 10-Q dated February 4, 2010, LLL, Inc., had outstanding employee stock options representing over 295 million shares of its stock. LLL accountants estimated
In its 10-Q dated February 4, 2010, LLL, Inc., had outstanding employee stock options representing over 295 million shares of its stock. LLL accountants estimated the value of these options using the Black-Scholes-Merton formula and the following assumptions: S= current stock price =$26.84 K= option strike price =$29.27 r= risk-free interest rate =0.055 = stock volatility =0.3 T= time to expiration =3.5 years What was the estimated value of these employee stock options per share of stock? (Note: LLL pays no dividends.) (Round your answer to 2 declmal pleces. Omlt the "\$" slgn In your response.)
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