Valuation Of Employee Stock Options II
- Topics:
- Stock Options
- Tags:
- Benefits,
- Finance,
- Frederic W Cook,
- Human Resources,
- Investment,
- Stock Options & Grants,
- Stock Price,
- Valuation,
- Volatility
- Source:
- Frederic W Cook
FREE Registration is required
Overview: The long-term nature of employee stock options places a premium on the volatilityassumption. Option Valuation Group OVG members do not support the use of a single estimate of volatility but rather an initial estimate based on implied and historical volatility and the use of a stochastic process to account for volatility changes through the life of an option depending on stock price paths and other factors such as reversion to the mean phenomena.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 130KB | Date: Aug 2003 | Pages: 3
People who downloaded this item also downloaded
 |
Should I Exercise My "In-The-Money" Stock Options? |
 |
IFRS 2 Sets Employee Stock Option Expensing Guidelines |
|
Using Incentive Stock Options |
|
Valuation of Employee Stock Options |
