Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 1 April 2002
Length: 4 pages
Data source: Generalised experience
Abstract
Details a thinly disguised situation facing a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options. There are two objectives: (1) serves as an introduction to option valuation, in which students have an opportunity to use market data to value an option in a realistic setting; and (2) the setting permits a broader discussion of the wisdom of option-based incentive plans and the popular misconceptions of the value of option grants based on a widespread misunderstanding of how options work and how they are valued.
Subject category:
Economics, Politics and Business Environment
Published by:
Harvard Business Publishing
Version: 11 February 2004
Length: 7 pages
About
Abstract
Details a thinly disguised situation facing a recent Harvard MBA graduate who was forced by a prospective employer to place a dollar value on a grant of stock options. There are two objectives: (1) serves as an introduction to option valuation, in which students have an opportunity to use market data to value an option in a realistic setting; and (2) the setting permits a broader discussion of the wisdom of option-based incentive plans and the popular misconceptions of the value of option grants based on a widespread misunderstanding of how options work and how they are valued.
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Subject category:
Economics, Politics and Business Environment
Published by:
Harvard Business Publishing
Version: 11 February 2004
Length: 7 pages