You have just started as a new star coder at Tesla (TSLA). Your pay package consists of
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Question:
You have just started as a new star coder at Tesla (TSLA). Your pay package consists of a base salary plus 2,000 three-year warrants on TLSA stock, with a strike price of $200. The stock currently trades at $184 with a volatility of 40% and the T-bill rate is 4.9%.
What is your "delta"? The definition of delta is, if you take an action today that raises the stock price by $1.
How much does your pay package increase in value?
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
Posted Date: