AASB 2 lists a number of factors that need to be considered when valuing an executive share option.They include:
A) the expected volatility of the share price.
B) the exercise price of the share.
C) the life of the underlying share.
D) the expected volatility of the share price and the exercise price of the share.

Question

Quizplus · Accepted Answer

Both the expected volatility of the share price and the exercise price of the share are important factors to consider when valuing an executive share option. The life of the underlying share is not mentioned as a factor in AASB 2.

AASB 2 Lists a Number of Factors That Need to Be