Lechno,Inc

question 15

Multiple Choice

Lechno,Inc.issues compensation options with the following terms.Strike = $65,price = $63.50,σ = 0.22,r = 0.045,div = 0.015.What is the value of the option if it will be repriced at $40? Assume 10 years to expiration.

• A) $18.64
• B) $22.22
• C) $24.32
• D) $26.84

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Postpurchase Stage

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Consumer Communications

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