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The following information is given for a 10 -year employee stock option in the table below. Suppose that employee exit rate is 7% and the
The following information is given for a 10 -year employee stock option in the table below. Suppose that employee exit rate is 7% and the early exercise occurs when the stock price is 2.5 times the current stock price. Using a three-step binomial tree what is the value of this employee stock option? (10p)
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