DocumentCode
3038468
Title
How to Calculate the Stockholders´ Cost of Stock Option Incentive
Author
Zhang, Caiyu ; Huo, Guoqing ; Lu, Keping
Author_Institution
Sch. of Manage., Grad. Univ. of Chinese Acad. of Sci., Beijing, China
fYear
2009
fDate
24-26 July 2009
Firstpage
355
Lastpage
359
Abstract
In this paper we discuss the risk discount and cost of stock option contracts based on theory analysis and arithmetic operation. First the calculation of data shows that expectation value cost increases with the rise of exercise price, with the same result as the previous prediction. Meanwhile, B-S cost can become larger or smaller with higher exercise price, which suggests that the expectation value cost is more reasonable. Then we explore the relationship between the expectation value cost and the B-S cost in stock option contracts based on theory analysis and discover the rational explanations for the above conclusion.
Keywords
contracts; pricing; stock markets; risk discount; stock option contracts cost; stock option incentive; stockholders cost; Conference management; Contracts; Cost function; Economic indicators; Energy management; Engineering management; Financial management; Mathematics; Pricing; Risk management; managers´ value; risk-averse; the B-S cost; the expectation value cost; the risk discount;
fLanguage
English
Publisher
ieee
Conference_Titel
Business Intelligence and Financial Engineering, 2009. BIFE '09. International Conference on
Conference_Location
Beijing
Print_ISBN
978-0-7695-3705-4
Type
conf
DOI
10.1109/BIFE.2009.88
Filename
5208869
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