The CFO of NuValue was granted 1,000,000 options.The equity price at the time of the granting of
the options was £20 and the options are at the money.The risk free rate was 4% and the options
expire in 5 years.The variance on the equity is .05.What is the value of her options contract? If she
had negotiated a larger salary and only 10,000 options, what would be the value of the options
contract?

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The Answer of The CFO of NuValue was granted 1,000,000 options.The equity price at the time of the granting of
the options was £20 and the options are at the money.The risk free rate was 4% and the options
expire in 5 years.The variance on the equity is .05.What is the value of her options contract? If she
had negotiated a larger salary and only 10,000 options, what would be the value of the options
contract?

The CFO of NuValue Was Granted 1,000,000 Options