Question: Week 12 Assignment Call Option Values 2. What is the value of exercising a call option expiring on June 30, 2023 to buy 1,000 shares
Week 12 Assignment Call Option Values 2. What is the value of exercising a call option expiring on June 30, 2023 to buy 1,000 shares of an employer's stock at an exercise price of $25.00 on the following dates: a. July 19, 2020 when employer stock is traded at $26.00? b. July 19, 2021 when employer stock is traded at $39.00? c. On October 29, 2021, the stock market crashes and the employer stock is traded in the market at $14.00 per share. What might the Board of Directors' Compensation Committee suggest to the board to make the stock option a strong incentive d. What is the value of exercising the currently granted option when the stock is traded at less than the exercise price of $25.00? e. The options are repriced at $17.00 to buy 1,200 shares on November 24, 2021. What is the value of exercising the option on December 18, 2021 when the employer's stock is traded at $19.00
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