Ima Greedy, the CFO of Financial Saving Techniques Has Been

question 22

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%.
-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:

Placebo Effect

The phenomenon in which a person's symptoms can improve after receiving a treatment with no therapeutic value, due to the belief in the treatment's efficacy.

Therapeutic Alliance

The collaborative relationship between a client and their therapist, which is an important factor in the effectiveness of therapy.

Psychotherapeutic Treatment

A type of therapy used to treat mental health problems by talking with a psychiatrist, psychologist, or other mental health provider.

Virtual Reality Exposure Therapy

A form of therapy that uses virtual reality technology to expose patients to simulations of their fears and traumatic memories in a controlled, therapeutic setting.