Suppose your employer offers you a choice between a $4,800 bonus and 100 shares of the company's stock. Whichever one you choose will be awarded today. The stock is currently trading at $62.23 per share. a. Suppose that if you receive the stock bonus, you are free to trade it. Which form of the bonus should you choose? What is its value? b. Suppose that if you receive the stock bonus, you are required to hold it for at least one year. What can you say about the value of the stock bonus now? What will your decision depend on?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Suppose your employer offers you a choice between a $4,800 bonus and 100 shares of the company's stock.
Whichever one you choose will be awarded today. The stock is currently trading at $62.23 per share.
a. Suppose that if you receive the stock bonus, you are free to trade it. Which form of the bonus should you choose?
What is its value?
b. Suppose that if you receive the stock bonus, you are required to hold it for at least one year. What can you say
about the value of the stock bonus now? What will your decision depend on?
Transcribed Image Text:K Suppose your employer offers you a choice between a $4,800 bonus and 100 shares of the company's stock. Whichever one you choose will be awarded today. The stock is currently trading at $62.23 per share. a. Suppose that if you receive the stock bonus, you are free to trade it. Which form of the bonus should you choose? What is its value? b. Suppose that if you receive the stock bonus, you are required to hold it for at least one year. What can you say about the value of the stock bonus now? What will your decision depend on?
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