Find the Total Number of Compounding Periods and the Interest

question 89

Short Answer

Find the total number of compounding periods and the interest rate per period: $$\begin{array} { l l l l l } \text { Term of } & \text { Nominal } & \text { Interest } & \text { Compounding } & \text { Rate per } \\\text { Investment } & \text { Rate } & \text { Compounded } & \text { Periods } & \text { Period } \\3 \text { years } & 18 \% & \text { monthly } &------ &----- \\\end{array}$$

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Definitions:

Exercise Price

The specified price at which an option's underlying security can be bought (call option) or sold (put option) by the option holder.

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Equity-settled

Transactions in which an entity receives goods or services as consideration for its own equity instruments, such as shares or share options.