ANALYTIC PRICING OF EMPLOYEE STOCK OPTIONS
Employee stock options are options given to employees as compensation for the good performance that employees have provided for the company. The provision of employee stock options by the company should be done simultaneously by allocating a number of funds that are the same as the price of empl...
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| Main Author: | |
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/36110 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Employee stock options are options given to employees as compensation for
the good performance that employees have provided for the company. The
provision of employee stock options by the company should be done simultaneously
by allocating a number of funds that are the same as the price of
employee stock options, which funds can be invested in a risk-free investment
place. The purpose of this investment is to minimize the risk if one day the
employee stock options are exercised. For this reason, it is necessary to determine
the value of employee stock options in order to ascertain how much
funds the company must prepare for the option. In this study, we will discuss
the analytic pricing of employee stock options by involving a barrier that is
monotonically decreasing. |
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