Option F&M Corporation has 1 million shares outstanding, currently selling at S90 each share. The risk-free interest rate is 10% per year. The standard deviation (o) of F&M's stock returns is 26% a year. Ms. Higden, the CEO of F&M Corporation, has been offered an incentive scheme based on the performance of the company's stocks. At the end of the year, Ms. Higden will be paid a cash bonus of $20,000 for every dollar that the company's stock price rises above S100 per share. Consider Ms. Higden's incentive scheme as a financial option QUESTIONS Is Ms. Higden's incentive scheme a call or a put option? Is it an American or European type option? What is the underlying asset of this option? Is Ms. Higden a holder or a writer of this option? 2. Describe the other key features of this option - what are the contract size, time to expiration (0, exercise price (EX), and current price of the underlying asset (P)? 3. Use the Black-Scholes option pricing model to estimate the value of each option. What is the total value of Ms Higden's incentive scheme