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Question 4 - Options and Option and Business Valuation (15 marks) a)Explain the five variables that affect the value of an option, and how do

Question 4 - Options and Option and Business Valuation (15 marks)

a)Explain the five variables that affect the value of an option, and how do changes in each of these variables affect the value of a call option? (5 marks

B)

Business valuation Price to earnings ratio: Using the information given in the table below, determine the price-earnings ratio for DEF Company? (10 marks)

Earnings

$190,000

Number of shares outstanding

70,000

Price per share

$25

Book value per share

$15

NOTE:- answer send me with working notes please.

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