Question
What is the value of exercising a call option expiring on December 31, 2024 to buy 400 shares of employers stock at an exercise price
What is the value of exercising a call option expiring on December 31, 2024 to buy 400 shares of employers stock at an exercise price of $17.00 on the following dates: A. May 19, 2021 when employer stock is traded at $17.00?
B. June 8, 2021 when employer stock is traded at $19.56?
C. July 22, 2022 when employer stock is traded at $16.50?
D. After a stock market crash on October 21, 2022, the employer stock traded in the market at $8.00 per share. The Board of Directors Compensation Committee suggested to the board that the options be repriced to make the stock option a strong incentive again. If the stock options are repriced allowing the executive holding the option to buy 800 shares at an exercise price of $8.00 per share, what would the intrinsic value of the options be worth on December 2, 2022 when the stock is traded at $8.50 a share?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started