Setting Better Employee Stock Option Price Targets

If you’re a financial advisor with clients or prospects that receive stock options from their employers, it can be like falling into a well and finding a bag of money at the bottom.  These individuals represent a fantastic long-term business opportunity; but there’s a catch, you need to be able to help them determine “why” and “when” they should exercise, sell and diversify. Here's 3 quick lessons on what advisors need to explain to their clients to make timely and...

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Black-Scholes v. Baroni-Adesi for Valuing Employee Stock Options

There are a variety of ways to calculate the Full Option Value (FOV) of employee stock options. The two most popular and relevant methodologies are Black-Scholes Merton and Baroni-Adesi Whaley. Detailed white papers on these methodologies can be found at the previous links, but the objective of this article is to simplify these complex formulas and explain the differences. .StockOpter.com can use either of these methodologies to calculate Full Option Value and Time Value. To change the methodology used by...

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