Note: Correct Answers to Later Questions Are Dependent on Correct

question 4

Multiple Choice

Note: Correct answers to later questions are dependent on correct answers to earlier questions.
-Ima Greedy,the CFO of Financial Saving Techniques has been granted options on 200,000 shares. The stock is currently trading at $23 a share and the options are at the money. The variance of the stock has been about .08 on an annual basis over the last several years. The options mature in 3 years and the risk free rate is 4%.
What is d₂?

• A) 0
• B) .0293
• C) .0386
• D) .0478
• E) .0565

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Definitions:

Upgrade Costs

Upgrade costs are expenditures related to the improvements or updates of products, services, or systems to enhance performance or functionality.

Theaters

Venues specifically designed for the performance of live shows, plays, or movies.

Surround Sound

Surround sound is an audio technology designed to replicate a multi-dimensional sound experience, making listeners feel as if sound is coming from multiple directions.

Average Cost

The average total cost per unit of output, calculated by dividing total cost of production by the number of units produced.