Question
Suppose you need to choose between two job offers from company x and y. Both are public companies and with stock trading at the same
Suppose you need to choose between two job offers from company x and y. Both are public companies and with stock trading at the same price. You were able to negotiate with Company X a compensation package consisting of a cash salary and some number of stock options. Company Y really wants to hire you, so they decide t match what you get from Company X, in terms of the amount of cash salary and the number of options. The option from the two companies are identical except that Company X's stock is 50% more volatile than Company Y. Which job offer is more attractive of you care about the value of total compensation?
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