Ima Greedy, the CFO of Financial Saving Techniques Has Been

question 18

Multiple Choice

Ima Greedy, the CFO of Financial Saving Techniques has been granted options on 200,000 shares. The stock is currently trading at $22 a share and the options are at the money. The variance of the stock has been about .07 on an annual basis over the last several years. The options mature in 3 years and the risk free rate is 4%.
-Calculate N(d₂) .

• A).5130
• B).5578
• C).6085
• D).7085
• E).7142

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Definitions:

Promotion

An advancement to a higher-level job with increased authority, responsibility, and pay.

Price

The amount of money expected, required, or given in exchange for something else, typically goods or services.