Question: consider a term that has given stock options on 20,000 shares to it senior executives. This call options can be exercised at the price of

consider a term that has given stock options on 20,000 shares to it senior executives. This call options can be exercised at the price of $22.00 anytime during the next 3 years. This pro has a total of 500,000 shares outstanding and the current price of $20 per share the firm's net income before taxes is $2,000,000

a. what would the firms products earnings per share if the options are not expensed?

b. Under certain assumptions the Black-Scholes model Valued the options given by the firm to eat executives at 4 dollar per share option. what would be the firms products earnings per share is the options are expensed accordingly?

c. under somewhat different assumptions, the Black -Scholes model valued the options at $5.25 per share option. what would be the Prince protects earnings per share if the options are expensed based on this valuation?

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