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  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • March 16, 2021 at 12:55 pm #614518
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    sir what does my study text mean when it states that “$15is the fair value of a share option” ? is it the option premium(intrinsic value + time value of money)? share price? just intrinsic value?

    March 16, 2021 at 3:07 pm #614525
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    Intrinsic value plus time value – you don’t need to distinguish them.

    You would find detail on this in FM / AFM

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