Multiple Choice
Mike was granted stock options on 10,000 shares of his employer's stock. The stock is currently selling for $53.93 a share and has a standard deviation of 18%. The option's strike price is $52.39 and the time to maturity is 5 years. What is the value of each option given a risk-free rate of 1.2%? Assume that no dividends are paid.
A) $8.59
B) $8.93
C) $10.73
D) $12.39
E) $14.35
Correct Answer:
Verified
Correct Answer:
Verified
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