Assume you work for a startup company and part of your compensation includes stock options. Specifically, your starting package includes 100 shares currently worth $200/share and a call option contract for 100 shares with a strike price of $200. Provide a graph of your portfolio valueon the y-axis with the stock price on the x-axis. If the company declares a 3-for-2 stock split, how many shares do you now own, what are they worth, and what are the new call option contract terms?

Answer rating: 100% (QA)

Before the stock split Number of shares owned 100 Stock price 200share Strike price of ... View the full answer