It is said that risk management does not necessarily add value, nevertheless, there exist explanations that support the implementation of risk management. Influenced by this thought the management of Risk Ltd$.$ is considering its options contracts, described below.

Contract $2$

One of Risk Ltd$.\text{'}$s options has an exercise price of $$30.$ The option's exercise value is $$44,$ and the option's premium is $$10.$

$1.$ Compute the price of the underlying stock for Contract $2.$

$2.$ Briefly explain two $(2)$ ways in which risk management contributes to the increase in the value of the company.