Ima Greedy, the CFO of Financial Saving Techniques Has Been

question 37

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 d1?

• A).1842
• B).4102
• C).4583
• D).4909
• E).5422

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Definitions:

Normal Account Balance

The typical or expected balance of an account, where asset and expense accounts are usually debit balances and liability, equity, and revenue accounts are credit balances.

Revenue Account

An account that tracks the income a company generates from its business activities.

Compound Entry

An accounting entry that involves more than two accounts, recording multiple debits and/or credits in a single transaction.

Journal

A detailed record of all the financial transactions of a business, which are initially documented before summarizing in the ledger.