Question
Jessica Silva, the CFO of a company has been granted options on 200,000 shares. The stock is currently trading at $22 a share and the
Jessica Silva, the CFO of a company has been granted options on 200,000 shares. The stock is currently trading at $22 a share and the options are at the money. The variance of the stock has been about 0.07 on annual basis over the last several years. The options mature in 3 years and the risk free rate is 4%. What is the value of a call otion per share and the total for 200,000 shares?
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Mathematics For Business
Authors: Stanley A Salzman, Charles D Miller, Gary Clendenen
8th Edition
0321357434, 9780321357434
