Multiple Choice
I.M.Greedy has been granted options on 500,000 shares.The stock is currently trading at $48 a share and the options are at the money.The standard deviation of returns averages 31 percent.The options mature in 5 years and the risk-free rate is 3.68 percent.What is the value of e−Rt?
A) .6087
B) .7087
C) .7952
D) .8476
E) .8319
Correct Answer:
Verified
Correct Answer:
Verified
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