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

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Trafford Publishing, 2002 - Mathematics - 210 pages
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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 options are granted at the market price, which is true for most companies, although some companies do grant options at premium or discount to the market price at the date of grant. This book gives the Valuation Factors (per share Black-Scholes value) of option, assuming both exercise price and stock price are $1, at different combinations of estimated dividend yield, expected life of options, risk free interest rate, and estimated volatility.

Determining the value of stock options with this book is similar to defining the present value of future payments by using a present value table at $1. Investors first find a Valuation Factor by matching their assumptions on risk-free interest rates (using Treasury STRIPS), estimated dividend yield, expected life of options and estimated volatility, and then multiply it by either the exercise price or the stock price followed by the number of shares. With this book, business professionals can easily prepare their FAS 123 pro-form disclosures on both their annual and interim reports as required by SEC.

 

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Contents

BlackScholes Option Valuation Factor Table
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BlackScholes Option Valuation Factor Table
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About the author (2002)

Steve Shaw is the lead Oracle technologist for Intel Corporation in EMEA (Europe, the Middle East, and Africa). Steve has more than 12 years of commercial IT experience witheight years dedicated to working with the Oracle Database, including a period of time with Oracle Corporation. Steve is the author of Hammerora, the open source Oracle load-test tool, and an expert on Oracle benchmarks and performance. Steve has contributed articles to many Oracle publications and web sites and presents regularly at Oracle seminars, conferences, and special-interest group meetings. He is an Oracle Certified Professional and holds a master of science degree in computing from the University of Bradford, U.K.

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