What Are the Determinants of Option Values

question 49

Essay

What are the determinants of option values?

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Definitions:

Negligent Misrepresentation

A false statement of material fact made by a party who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Statute of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved to be enforceable.

Lifetime Employment

A practice, often associated with Japanese companies, where employees are hired with an understanding or expectation of employment security until retirement.

Performance

The act of fulfilling the duties or requirements specified in a contract or agreement.