Question: help 1 QUESTION 1 5 points You have been granted stock options on 300 shares of your employer's stock. The stock is currently seling for

help 1
help 1 QUESTION 1 5 points You have been granted stock options

QUESTION 1 5 points You have been granted stock options on 300 shares of your employer's stock. The stock is currently seling for $3780 and has a standard deviation of 30%. The option's triko prices $35 and the time to maturity is 10 years. What is the value of each option given a risk free rate of 3.0%? Assume that no dividends are paid The standard normal probabilities are N-1). 19109 N/-02) 53008 For the toolbar, press ALT F10 (PC) or ALT FNF10 (Mac) B 7 U S Paragraph Arial 10pt A T. * > > !!! !!! 6 ==== EE X X X X TT +] 15 SB BC BD (1)

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To find the value of each option we can use the BlackScholes option pricing model Heres how you can ... View full answer

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