Willco,Inc

question 5

Multiple Choice

Willco,Inc.issues compensation options with the following terms.Strike = $45,price = $42.00,σ = 0.48,r = 0.05,div = 0.02.What is the value of the option if it will be repriced at $30? Assume 10 years to expiration.

• A) $22.78
• B) $24.65
• C) $26.22
• D) $30.46

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Definitions:

Team Diversity

The inclusion of members with varied backgrounds, experiences, and skills in a team, enhancing creativity and problem-solving.

Ethical Method

A systematic approach to making decisions that consider moral principles and values.

Cross-Functional

Pertaining to a team or process that involves individuals from different departments or areas of expertise working together toward a common goal.

Integrator

An individual or tool that combines various elements or systems into a cohesive, functioning whole.