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Suppose you are tasked with designing a compensation package for a CEO. The board would like to compensate the CEO with 10m USD worth of

Suppose you are tasked with designing a compensation package for a CEO. The board would like to compensate the CEO with 10m USD worth of 5-year, at-the-money European call options on the company's stock. The company's stock currently trades for 50 USD per share. How many options should the company grant the CEO? Suppose that the continuously-compounded risk-free rate is 1% and the stock's volatility is 30%.

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