Question 2

QUESTION 2 The senior management team of a multinational company have a share option reward package that allows them to purchase 20,000 shares in the company at a price of 4.00 in four years' time. The current share price of the company is 3.45. It is expected to grow at a rate of 5% for the first two years then 7% for the next two years. How much gain would each director expect toomake from exercising the options