Ima Greedy, the CFO of Financial Saving Techniques Has Been

question 12

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 d₂?

• A) 0.0121
• B) 0.0252
• C) 0.1732
• D) 0.0452
• E) 0.0525

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Definitions:

Cubic Feet

A unit of volume measurement in the imperial system, used to quantify the space an object occupies, often represented as ft³.

Sales Commission

A payment made to sales personnel, often calculated as a percentage of the sales they generate.

After-Tax Profits

Net income after accounting for all taxes, representing the company's profit remaining after tax expenses.