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Katerina is offered a job as CEO at Nate's Amazing Bicycles, Inc. (NAB) Katerina is offered options to purchase 10,000 shares of NAB stock for
Katerina is offered a job as CEO at Nate's Amazing Bicycles, Inc. (NAB) Katerina is offered options to purchase 10,000 shares of NAB stock for $10 each. The options vest over 4 years. At the end of year 1, 2, 3 and 4, the NAB stock is valued at $30, $40, $20 and $80. Tell me how much in potential profit Katerina could have from the stock options at the end of years 2 and 4, showing me the calculations. (Presume she does not exercise any until year 4 or later.)
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