Black-Scholes Option Valuation Factor Table at $1 of Both Exercise Price and Stock Option (ePub)

BLACK-SCHOLES OPTIONS VALUATION FACTOR TABLE AT $1 OF BOTH EXERCISE PRICE AND STOCK OPTION" provides you with a simple classic way to use Nobel prized "Black-Scholes Option Pricing Model" in valuing stock options granted at the market price. The basic assumption is that the stock optionsare granted at the market price, which is true for most companies, although some companies dogrant options at premium or discount to the market price at the date of grant. This book gives theValuation Factors (per share Black-Scholes value) of option, assuming both exercise price andstock price are $1, at different combinations of estimated dividend yield, expected life ofoptions, risk free interest rate, and estimated volatility.Determining the value of stock options with this book is similar to defining the present value offuture payments by using a present value table at $1. Investors first find a Valuation Factor bymatching their assumptions on risk-free interest rates (using Treasury STRIPS), estimated dividendyield, expected life of options and estimated volatility, and then multiply it by either theexercise price or the stock price followed by the number of shares. With this book, businessprofessionals can easily prepare their FAS 123 pro-form disclosures on both their annual andinterim reports as required by SEC.