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You are the CEO of Google. The Board of Directors offered you the following bonus scheme. You will receive $40,000 bonus for every $1 increase

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You are the CEO of Google. The Board of Directors offered you the following bonus scheme. You will receive $40,000 bonus for every $1 increase in the company's share price if the share price is above $160 at the end of the year. However, your bonus is limited to $2million. Draw your bonus as a function of Google share price. You are in fact offered a combination of options. Construct your bonus payoff using options. You are the CEO of Google. The Board of Directors offered you the following bonus scheme. You will receive $40,000 bonus for every $1 increase in the company's share price if the share price is above $160 at the end of the year. However, your bonus is limited to $2million. Draw your bonus as a function of Google share price. You are in fact offered a combination of options. Construct your bonus payoff using options

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