Dividend Assumption Impact on Employee Stock Option Time Value and the Insight Ratio

POSTED ON February 28, 2013 BY stockopter

By: Bill Summers, CPA, CFP®, MST Introduction: When using StockOpter.com the question often arises as to whether the dividend yield should be used to calculate the Black-Scholes and time value. This question is often asked with regard to the Insight Ratio® (time value divided by Black-Scholes value). This paper explores the ramifications of using the […]