The CEO of NuValue was granted 1,000,000 options.The equity price at the time of the granting of
the options was £45 and the options are at the money.The risk free rate was 5% and the options
expire in 5 years.The variance on the equity is .04.What is the value of the options contract? If he
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 CEO of NuValue was granted 1,000,000 options.The equity price at the time of the granting of
the options was £45 and the options are at the money.The risk free rate was 5% and the options
expire in 5 years.The variance on the equity is .04.What is the value of the options contract? If he
had negotiated a larger salary and only 10,000 options, what would be the value of the options
contract?

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