Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Just need help with this 2 part question.
![2. What is the proceeds (in millions) from
the in-the-money options? (keep two
decimals)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F114974c8-6422-48f4-a752-dce8c13c7eb6%2F1e518f33-2317-484e-a2d7-88edc68c960b%2Fh3n6ze_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. What is the proceeds (in millions) from
the in-the-money options? (keep two
decimals)
![Current share price: $50; Basic shares
outstanding: 80 (in millions).
1. What is the total shares of in-the-
money options? (keep one decimal place)
number of
shares
Exercise
price
Tranche 1
1.5
$10
Tranche 2
1.0
$25
Tranche 3
0.2
$45
Tranche 4
0.4
$55](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F114974c8-6422-48f4-a752-dce8c13c7eb6%2F1e518f33-2317-484e-a2d7-88edc68c960b%2F8a0c0g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Current share price: $50; Basic shares
outstanding: 80 (in millions).
1. What is the total shares of in-the-
money options? (keep one decimal place)
number of
shares
Exercise
price
Tranche 1
1.5
$10
Tranche 2
1.0
$25
Tranche 3
0.2
$45
Tranche 4
0.4
$55
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