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Given the following earnings estimates,compute the value of the business.
Exercise Price
The predetermined price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.
Call Option
A financial contract giving the buyer the right, but not the obligation, to purchase a stock or other asset at a specified price within a specified time.
Risk-free Rate
Often considered as the return on government securities, it represents the interest an investor would expect from an absolutely risk-free investment over a specified period.
Put Option
A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified period.
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