Walter Maxim

question 20

Essay

Walter Maxim. the CWO of digitl storage Devices has been granted option on 300,000 shares. The stock is currently trading at $27 a share and the options are at the money. The volatility of the stock has been about .15 on an annual basis over the last several years. The options mature in 5 years, become exercisable in 3 years, and the risk free rate is 4%.
-What is the value of Mr.Maxim's options?

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Definitions:

Vagina

A muscular tube connecting the external genitals to the cervix of the uterus in females, playing roles in intercourse and childbirth.

Ovary

A female reproductive organ in which oocytes (egg cells) are produced and stored, also responsible for the production of hormones like estrogen and progesterone.

Copulatory Organ

A structure in an animal's body used for mating and transferring sperm to the female reproductive tract.

Prostate Gland

A gland in the male reproductive system that produces fluid to nourish and transport sperm.