Ima Greedy,the CFO of Financial Saving Techniques Has Been Granted

question 29

Multiple Choice

Ima Greedy,the CFO of Financial Saving Techniques has been granted options on 200,000 shares.The equity is currently trading at £22 a share and the options are at the money.The volatility of the equity has been about .20 on an annual basis over the last several years.The option mature in 3 years and the risk free rate is 4%. What is the value of a call option?

• A)£4.14
• B)£4.86
• C)£5.13
• D)£5.62
• E)£6.16

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Definitions:

Accessory Equipment

Supplementary components or items that enhance or complete the functionality of a main product or system.

Pneumatic Nail Gun

A tool powered by compressed air used for driving nails into wood or other materials, significantly speeding up construction and carpentry projects.

Copper Wiring

Electrical conductors used for transmitting electricity, known for its excellent conductivity and flexibility.

Business Products

Goods and services that are purchased or leased for the main purpose of using them in the operation of a business rather than for personal use or consumption.