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:

Hydraulic Cylinders

Actuators that convert hydraulic fluid pressure into linear motion, used in a variety of machinery and equipment for lifting, pushing, or pulling.

Concrete

A construction material composed of cement, water, aggregates, and sometimes admixtures, used for building a wide variety of structures.

Prevailing Torque

A term used to describe the resistance to loosening provided by some type of fasteners, often achieved through friction or deformation.

Nylon Lock

A type of lock nut that uses a nylon insert to prevent loosening under vibration and torque.