Chapter_23

# Chapter_23 - Chapter 23 Problems 1-9 Input boxes in tan...

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Chapter 23 Problems 1-9 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."

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Chapter 23 Question 1 Input Area: Options granted 20,000 Current stock price \$50 Exercise price \$50 Expiration (months) 48 Risk-free rate 6% Standard deviation 55% Output Area: 0.7682 (0.3318) 0.7788 0.3700 Call \$24.39 Grant value \$487,747.66 d 1 d 2 N(d 1 ) N(d 2 )

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Chapter 23 Question 2 Input Area: Annual salary \$400,000 Years for contract \$3 Discount rate for salary 9% Options granted 10,000 Current stock price \$40 Exercise price \$40 Expiration (months) 36 Risk-free rate 5% Standard deviation 68% Output Area: PV of salary \$1,012,517.87 0.7163 (0.4615) 0.7631 0.3222 Call \$19.43 Grant value \$194,303.19 Contact value \$1,206,821.05 d 1 d 2 N(d 1 ) N(d 2 )
Chapter 23 Question 3 Input Area:

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Chapter_23 - Chapter 23 Problems 1-9 Input boxes in tan...

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