Navajo Ltd Have the Following Options on Issue as at 30

question 76

Multiple Choice

Navajo Ltd have the following options on issue as at 30 June 2009: $$\begin{array} { | l | l | l | l | } \hline & \begin{array} { l } \text { I: } \\\text { Option issued } \\1 \text { July } 2006\end{array} & \begin{array} { l } \text { II: } \\\text { Option issued } \\1 \text { July } 2007\end{array} & \begin{array} { l } \text { III: } \\\text { Option issued } \\1 \text { July } 2008\end{array} \\\hline \text { Number of options } & 100000 & 200000 & 300000 \\\hline \text { Exercise price } & \$ 2.60 & \$ 3.30 & \$ 4.50 \\\hline \text { Expiry date } & 30 \text { June } 2010 & 30 \text { June } 2012 & 30 \text { June 2013 } \\\hline\end{array}$$ The close price for Navajo Ltd shares was $3.35 and the average market price for the period was $3.20.
In relation to Option 1 issued on 1 July 2006,how many shares are deemed to be issued for no consideration?

• A) Nil
• B) 18 750
• C) 22 388
• D) 100 000

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Definitions:

Degrees of Freedom

The count of independent variables or measurements that can be allocated to a statistical distribution, subtracting the quantity of estimated parameters.

Number of Blocks

In experimental design, the total count of groups or sets into which experimental units are divided for the purpose of minimizing variance due to confounding variables.

Randomized Block Design

A statistical experiment design that aims to reduce variability among experimental units by grouping them into blocks before randomly assigning treatments.

Significant Interaction

Indicates a combined effect of two or more variables on a dependent variable that is greater than the sum of their individual effects.