Employee stock options have additional risk over and above standard call options in that the employee may
Question:
Employee stock options have additional risk over and above standard call options in that the employee may not be able (or allowed) to cash in the option in the event of termination of the employee’s job with the firm if the option is not vested. But if the option is vested, so immediate exercise in the event of termination is possible, should it be worth as much as the usual American option trading on the firm? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: