You have been granted stock options on 300 shares of your employer's stock. The stock is currently selling for $37.80 and has a standard deviation of 30 percent. The option's strike price is $35 and the time to maturity is 10 years. What is the value of each option given a risk-free rate of 3.0 percent?

Answer rating: 100% (QA)

To calculate the value of the stock options we can use the BlackScholes option pricing model The for... View the full answer