Employee Stock Options: Exercise Timing, Hedging, And Valuation

Employee Stock Options: Exercise Timing, Hedging, And Valuation
Author :
Publisher : World Scientific
Total Pages : 227
Release :
ISBN-10 : 9789813209657
ISBN-13 : 9813209658
Rating : 4/5 (658 Downloads)

Book Synopsis Employee Stock Options: Exercise Timing, Hedging, And Valuation by : Tim Siu-tang Leung

Download or read book Employee Stock Options: Exercise Timing, Hedging, And Valuation written by Tim Siu-tang Leung and published by World Scientific. This book was released on 2021-07-29 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: Employee stock options (ESOs) are an integral component of compensation in the US. In fact, almost all S&P 500 companies grant options to their top executives, and the total value accounts for almost half of the total pay for their CEOs. In view of the extensive use and significant cost of ESOs to firms, the Financial Accounting Standards Board (FASB) has mandated expensing ESOs since 2004. This gives rise to the need to create a reasonable valuation method for these options for most firms that grant ESOs to their employees. The valuation of ESOs involves a number of challenging issues, and is thus an important active research area in Accounting, Corporate Finance, and Financial Mathematics.In this exciting book, the author discusses the practical and challenging problems surrounding ESOs from a financial mathematician's perspective. This book provides a systematic overview of the contractual features of ESOs and thoughtful discussions of different valuation approaches, with emphasis on three major aspects: (i) hedging strategies; (ii) exercise timing; and (iii) valuation methodologies. In addition to addressing each of these categories, this book also highlights their connections and combined effects of the cost of ESOs to firms, as well as examines the implications to modeling and valuation approaches. The book features a unique approach that combines stochastic modeling and control techniques with option pricing theory, and provides formulas and numerical schemes for fast implementation and clear illustration.


Employee Stock Options: Exercise Timing, Hedging, And Valuation Related Books

Employee Stock Options: Exercise Timing, Hedging, And Valuation
Language: en
Pages: 227
Authors: Tim Siu-tang Leung
Categories: Business & Economics
Type: BOOK - Published: 2021-07-29 - Publisher: World Scientific

GET EBOOK

Employee stock options (ESOs) are an integral component of compensation in the US. In fact, almost all S&P 500 companies grant options to their top executives,
Employee Stock Options: Exercise Timing, Hedging, and Valuation
Language: en
Pages: 180
Authors: Tim Siu Leung
Categories: Business & Economics
Type: BOOK - Published: 2018-05-31 - Publisher: Modern Trends in Financial Eng

GET EBOOK

Getting Started In Employee Stock Options
Language: en
Pages: 226
Authors: John Olagues
Categories: Business & Economics
Type: BOOK - Published: 2010-01-14 - Publisher: John Wiley & Sons

GET EBOOK

An A to Z guide for understanding employee stock options (ESOs). In Getting Started In Employee Stock Optionsauthors John Olagues and John Summa provide a full
Leveraged ESOPs and Employee Buyouts
Language: en
Pages: 230
Authors: Scott S. Rodrick
Categories: Business & Economics
Type: BOOK - Published: 2000 - Publisher:

GET EBOOK

Executive Compensation and Shareholder Value
Language: en
Pages: 159
Authors: Jennifer Carpenter
Categories: Business & Economics
Type: BOOK - Published: 2013-04-17 - Publisher: Springer Science & Business Media

GET EBOOK

Executive compensation has gained widespread public attention in recent years, with the pay of top U.S. executives reaching unprecedented levels compared either