You are in talks to start working at a small biotech firm. The pay package they are
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Question:
You are in talks to start working at a small biotech firm. The pay package they are offering consists of a low-six-figure annual salary plus 10,000 5-year warrants with a strike price of $30 on the firm's stock. The stock is currently trading at $12.55 per share, has a volatility of 33%, and the risk free rate is 4.4%.
What is the present value of the warrants?
a) $12,753
b) $65,044
c) $344,078
d) $22,105
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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