Ima Greedy, the CFO of Financial Saving Techniques Has Been

question 21

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 the value of a call option?

• A) $3.14
• B) $5.86
• C) $4.26
• D) $5.62
• E) $6.16

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Definitions:

Informed Consent

A process whereby individuals are provided with all relevant information regarding a procedure or experiment, allowing them to make a voluntary and informed decision about participation.

Experiment

A deliberate manipulation of a variable to see if corresponding changes in behavior result, allowing the determination of cause-and-effect relationships.

Experimenter Effects

Unintentional cues or biases from the experimenter that can influence the outcome of a study or the behavior of participants.

Unintended Changes

Alterations that occur without deliberate planning or goal-setting, often unexpectedly affecting environments or systems.