• What is the company you have selected - Target
• What is the company using their option contract for - Stock
Options to certain team members
• What is the value of the option contract in the Annual
Statements - Current value of the option contract is $210M
• Copy/paste a picture of the value from the financial statements.
• Imagine you are a retiree from this company and received stock
as part of your pension package benefit. What would you do
with the shares to earn extra money above the dividends:
As a Target retiree, holding stocks until the price of the shares
reaches a certain level can earn additional money outside of
dividends. At that time, I would sell some of the shares to maintain my
dividend income, while keeping some for myself. Target retirees who
are receiving their pension benefits can strategically use the company
stock they received as part of their package to earn additional money.
It can act as an equity investment and increase the potential of high
returns. It is important to use the stocks available in different ways so
that maximum returns can be achieved. The market performance of
the stock should be evaluated to get a better idea of its trade range. A
covered call option can also be used to make money over dividends.
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