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QUESTION 6 Suppose that a company is trying to value their employee stock options. The option have a strike price of $65. The stock is

QUESTION 6

Suppose that a company is trying to value their employee stock options. The option have a strike price of $65. The stock is currently trading for $62.50. The volatility is 35.33%. The risk free rate is 1%. The dividend yield is 2.44%. What is the value using a time frame of eight years?

A.

$15.23

B.

$16.99

C.

$17.26

D.

$23.88

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