Ima Greedy, the CFO of Financial Saving Techniques Has Been

question 7

Multiple Choice

Ima Greedy, the CFO of Financial Saving Techniques has been granted options on 200,000 shares. The stock is currently trading at $22 a share and the options are at the money. The volatility of the stock 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) 0.5196
• E) .5412

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Definitions:

Mean Height

The average height calculated by summing the heights of all individuals in a group and dividing by the number of individuals.

Statistics Classmate

A peer enrolled in the same statistics course, often collaborating on studies and projects related to the subject.

Confidence Interval

A range of values, derived from the sample data, within which there is a specified probability that the true parameter of the population lies.

Mean Weight Loss

Refers to the average amount of weight lost over a specified period by a group of individuals, often used in diet, exercise, and health research.