In: Finance
Jessica Silva, the CFO of a company has been granted options 200,000 shares. The stock is currently trading at $22 a share and options are at the money. The variance of the stock has been about 0.07 on an annual basis over the last several years. The options mature in 3 years and the risk free rate is 4%. What is the value of a call option per share and the total for 200,000 share?