The common shares of Twitter Inc. recently traded on the New York Stock Exchange for $21.10 per share. You have employee stock options to purchase 1000 Twitter shares for $19.90 per share. The options expire in three years. Assume that the annualized volatility of Twitter stock is 88.0% and that the interest rate is 2.3%. Assume the options are European options that may only be exercised at the maturity date. <\/p>
<\/p>
Is this option a call or a put? <\/p>", "transcribed_text": "", "related_book": { "title": "The Legal Environment Of Business", "isbn": "013354642X, 9780133546422", "edition": "7th Edition", "authors": "Nancy Kubasek", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/65fbd6a7c1cb7_2622.jpg", "uri": "\/textbooks\/the-legal-environment-of-business-7th-edition-9780133546583", "see_more_uri": "" }, "free_related_book": { "isbn": "1523006412", "uri": "\/textbooks\/daily-practices-of-inclusive-leaders-a-guide-to-building-a-culture-of-belonging-1st-edition-978-1523006410-303584", "name": "Daily Practices Of Inclusive Leaders A Guide To Building A Culture Of Belonging", "edition": "1st Edition" }, "question_posted": "2024-06-05 23:07:52", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/list-the-properties-of-the-normal-density-curve", "description": "List the properties of the normal density curve.", "stars": 3 }, { "url": "\/study-help\/college-algebra\/if-a-square-piece-of-cardboard-has-3in-squares-cut", "description": "If a square piece of cardboard has 3-in. squares cut from its corners and then has the flaps folded up to form an open-top box, the volume of the box is given by the formula where x is the length of...", "stars": 3 }, { "url": "\/study-help\/introduction-to-probability-statistics\/let-a-b-and-c-be-three-events-in-a-1981721", "description": "Let A, B, and C be three events in a sample space. If A B and the events A and C are disjoint, then the events B and C are also disjoint.", "stars": 3 }, { "url": "\/mexico-timeshare-inc-has-the-following-transactions-related-to-notes", "description": "Mexico Timeshare, Inc., has the following transactions related to notes receivable during the last two months of 2008: Nov. 1 ....Loaned $18,000 cash to Norma Hanson on a one-year, 10 percent note....", "stars": 3 }, { "url": "\/study-help\/questions\/assume-that-an-organization-maintains-and-uses-one-checking-account-9867703", "description": "Assume that an organization maintains and uses one checking account. Further assume that a representative of the bank where the checking account is located has alerted law enforcement that the...", "stars": 3 }, { "url": "\/study-help\/questions\/question-15-1-pts-tim-alte-11-you-are-considering-7857618", "description": "Question 15 1 pts Tim Alte 11 You are considering investing in a project that increases annual costs by $25.000 per year over the project's 5 year life. The project has an initial cost of $500,000...", "stars": 3 }, { "url": "\/study-help\/questions\/jose-own-a-small-retail-store-and-hires-sam-as-1003228", "description": "Jose own a small retail store and hires Sam as his agent to manage the store while he is away on vacation. Jose instructs Sam to only sell items at a 10% discount. However, Sam mistakenly sells a...", "stars": 3 }, { "url": "\/study-help\/questions\/in-south-africa-while-excessive-deadly-or-lethal-use-of-1002824", "description": "In South Africa, while excessive, deadly, or lethal use of force tends to be associated more often with the SAPS, private security officers have also been guilty of such activities. This connotation...", "stars": 3 }, { "url": "\/study-help\/questions\/7-bright-semiconductor-specializes-in-semiconductors-that-are-used-in-1001049", "description": "7) Bright Semiconductor specializes in semiconductors that are used in autos, communication equipment, and industrial machinery, which are cyclical industries. This high-yield-rated company's debt...", "stars": 3 }, { "url": "\/study-help\/questions\/read-the-notes-to-the-financial-statements-fs-for-amazon-1000509", "description": "Read the Notes to the Financial Statements (FS) for AMAZON. These \"notes\" are displayed after the financial statements. The notes are required supplemental disclosures to a company's financial...", "stars": 3 }, { "url": "\/study-help\/questions\/preparation-of-a-questionnaire-you-decided-on-the-business-general-1000080", "description": "Preparation of a Questionnaire you decided on the business general manager and employees to be interviewed. This week, you will prepare the questions individually and then finalize the questionnaire...", "stars": 3 }, { "url": "\/study-help\/questions\/the-junior-accountant-of-the-munira-company-a-major-merchandiser-7069407", "description": "The junior accountant of the Munira Company, a major merchandiser, had documents relating to the following financial data in June 2020: Sales of merchandise were AED 2,400,000, advertising expenses...", "stars": 3 }, { "url": "\/study-help\/cost-accounting-\/convert-variable-to-absorption-salado-corp-produces-small-outdoor-sheds-1553897", "description": "(Convert variable to absorption) Salado Corp. produces small outdoor sheds. The company began operations in 2006, produced 1,750 sheds and sold 1,500. A variable costing income statement for 2006...", "stars": 3 }, { "url": "\/study-help\/cost-accounting-\/income-statements-for-two-years-both-methods-dtect-manufactures-radar-1553896", "description": "(Income statements for two years, both methods) D-Tect manufactures radar detectors. Each unit contains product cost of $20 for direct material, $60 for direct labor, and $20 for variable overhead....", "stars": 3 }, { "url": "\/study-help\/cost-accounting-\/absorption-costing-versus-variable-costing-riveting-manufacturing-builds-light-aircraft-1553895", "description": "(Absorption costing versus variable costing) Riveting Manufacturing builds light aircraft engines and, since opening in 2005, has quickly gained a reputation for reliable and quality products....", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/1-let-kx-x2-2-the-function-2322932", "next": "\/study-help\/questions\/assuming-that-there-is-an-unlevered-firm-and-a-levered-2322934" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Finance", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance" }, { "name": "The common shares of Twitter Inc. recently traded on the New York", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/the-common-shares-of-twitter-inc-recently-traded-on-the-2322933" } ], "skill_details": { "skill_id": "13", "skill_name": "Finance", "parent_id": "1" } } } }