Title: The Subjective and Objective Evaluation of Incentive Stock Options
Abstract: Incentive options are held by managers and employees who invariably hold undiversified portfolios with substantial amounts invested in their own company's common stock. This lack of diversification makes the subjective value of incentive items such as options less than their market value. This paper derives a model for the marginal value of such options or other incentive items. As such, it can be used to evaluate heterogeneous options which mature on different dates. It can also be used each time a new option is granted.
Publication Year: 2002
Publication Date: 2002-01-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 72
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