The CFO of NuValue was granted 1,000,000 options. The stock 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 stock 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?

Question

The CFO of NuValue was granted 1,000,000 options. The stock 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 stock 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 stock 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 stock 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