Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. assume that you, as an sti employee, were awarded

Assume that you, as an STI employee, were awarded options on 1,000 shares of STI stock...

60.1K

Verified Solution

Question

Finance

Assume that you, as an STI employee, were awarded options on1,000 shares of STI stock today at the current market price.Without doing a detailed numerical calculation, make yourbest-guess estimate as to the economic value of this option grant.What factors did you consider in making your estimate? Would thisoption grant likely affect any of your behaviors? If so, how?

Answer & Explanation Solved by verified expert
3.7 Ratings (366 Votes)
Volatility It measure how much the stock prices varies from day to day It undergo larger and more frequent price changes than nonvolatile stocks A small change in the volatility estimate can have a significant impact on the price of an option Looking at the broad market trends that will push up the profits    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Assume that you, as an STI employee, were awarded options on1,000 shares of STI stock today at the current market price.Without doing a detailed numerical calculation, make yourbest-guess estimate as to the economic value of this option grant.What factors did you consider in making your estimate? Would thisoption grant likely affect any of your behaviors? If so, how?

Other questions asked by students

Q

Please explain this thermodynamics answer to the question. Q: What is the requirement for a single...

Chemistry
Q

the arterial blood gas results show pCO2 of 54 and pH 7.6,this suggest a. metbolic alkalosis b. respiratory...

Medical Sciences
Q

Imagine you work in a correctional institution and oversee the programs offered to offenders. The budget...

Psychology
Q

On June 30, 2018, Blue, Inc. leased a machine from Big Leasing Corporation. The lease agreement...

Accounting
Q

Which of the following is least likely to result in the formation of a cancerous...

Biology
Q

3 In the diagram of circle A m2D 38 Label the measures of ZBAC and...

Geometry
Q

ow and b w 2 2 2 at the point x y z 2 1...

Calculus
Q

Consider the graph shown in the figure which gives the velocity of an object moving...

Calculus
Q

Consider the following Cube roots of 1 3i 729 2 a Use the formula z...

Algebra
Q

nomial Division Factor Divide using long division State the quotient q x and the remainder...

Algebra
Q

BatCo makes baseball bats. Each bat requires 1.00 pounds of wood at $20...

Accounting
Q

4, 31 Scoresby Incorporated tracks the number of units purchased and sold throughout each year...

Accounting