Ima Greedy, the CFO of Financial Saving Techniques Has Been

question 3

Multiple Choice

Ima Greedy, the CFO of Financial Saving Techniques has been granted options on 200,000 shares. The equity is currently trading at £22 a share and the options are at the money.The volatility of the
Equity has been about .20 on an annual basis over the last several years.The option mature in 3
Years and the risk free rate is 4%.
What is the value of a call option?

• A)£4.14
• B)£4.86
• C)£7.57
• D)£5.62
• E)£6.16

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Definitions:

Stage Theories

Psychological theories that describe human development and behavior as occurring in distinct stages, each with its own characteristics.

Continuum Theories

Theories suggesting that certain phenomena, such as health behaviors, exist along a continuous scale rather than being distinct or binary.

Response Efficacy

The extent to which a behavior, action, or intervention is successful in achieving the desired outcome in a given context.

Stages Of Change

A component of the Transtheoretical Model that describes the phases individuals go through in modifying behavior.