The executive janitor of NuValue was granted 1,000,000 options.The equity price at the time of the
granting of the options was £25 and the options are at the money.The risk free rate was 3% and the
options expire in 3 years.The variance on the equity is .04.What is the value of the options
contract?

Question

Quizplus · Accepted Answer

The Answer of The executive janitor of NuValue was granted 1,000,000 options.The equity price at the time of the
granting of the options was £25 and the options are at the money.The risk free rate was 3% and the
options expire in 3 years.The variance on the equity is .04.What is the value of the options
contract?

The Executive Janitor of NuValue Was Granted 1,000,000 Options