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
12
![2. What is the proceeds (in millions) from
the in-the-money options? (keep two
decimals)
3. What is the new shares in millions (the
shares from the in the money options -
the shares from repurchase) from the
options? (keep two decimals)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fc24252-93ab-45d8-8f8a-eb38becfddd6%2F3e9cfb18-2301-4e30-ad38-4a9574a47b43%2F34r3nne_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)
3. What is the new shares in millions (the
shares from the in the money options -
the shares from repurchase) from the
options? (keep two decimals)
![Using the information for the next 4
questions.
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
Exercise
shares
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%2F9fc24252-93ab-45d8-8f8a-eb38becfddd6%2F3e9cfb18-2301-4e30-ad38-4a9574a47b43%2Fkhue3aj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Using the information for the next 4
questions.
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
Exercise
shares
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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