IRFS 2 Lists a Number of Factors That Need to Be

question 38

Multiple Choice

IRFS 2 lists a number of factors that need to be considered when valuing an executive share option.They include:

• A)the expected volatility of the share price.
• B)the exercise price of the share.
• C)the life of the underlying share.
• D)the expected volatility of the share price and the exercise price of the share.

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Definitions:

Freud

Sigmund Freud, the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Psychic Energy

A concept in psychoanalytic theory referring to the energy of the mind's workings, driving thoughts, emotions, and behaviors.

Oedipus Complex

A Freudian concept involving a child's unconscious sexual desire for the parent of the opposite sex and jealousy towards the same-sex parent.

Freud

Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.