Divided the money according to the option pricing theory

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Nui and Ginko bought Handa Studios by investing $1.5 million each. Nui was a stockholder, and thus the owner of the company. Initially, the corporation agreed to pay Ginko $3 million after ten years for his share of the business. However, by mutual agreement, they sold the studio after 6 years for $5.5 million and divided the money according to the option pricing theory. The riskless rate at the time was 3.6%, and the σ of Handa Studios was 0.41. Find the amount of money that went to Nui and to Ginko.

Reference no: EM13918399

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