Find the amount of money for riskless rate


Thomas and Gerard bought Galveston Corporation by investing $500,000 each. Thomas was a stockholder, and thus the owner of the company. The corporation agreed to pay Gerard $1.5 million after ten years for his share of the business. However, by mutual agreement, they sold the apartments after 5 years for $6 million and divided the money according to the option pricing theory. The riskless rate at the time was 4%, and the σ of Galveston Corporation was 0.5. Find the amount of money that went to Thomas and to Gerard.

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Microeconomics: Find the amount of money for riskless rate
Reference No:- TGS072714

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