The way to equate the given agreement of the manager’s options on the firm’s stock. Introduction: call option is a way for the option holder to acquire the assets or contract at the predestined value. But an option holder wants to gain some profit so they purchase the shares when the shares’ price more than the contract price.

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Chapter 20, Problem 19PS

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To explain: The way to equate the given agreement of the manager’s options on the firm’s stock.

Introduction: call option is a way for the option holder to acquire the assets or contract at the predestined value. But an option holder wants to gain some profit so they purchase the shares when the shares’ price more than the contract price.

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