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We discussed the advantages and disadvantages of option repricing for Employee Stock Options (ESOs). What would be the advantages and disadvantages to reprice ESOs following
- We discussed the advantages and disadvantages of option repricing for Employee Stock Options (ESOs). What would be the advantages and disadvantages to reprice ESOs following a market-wide crash? Do you think it is advisable to reprice ESOs following a sharp decline in the firms stock price due to a mistake in the firms overall strategy? Why? (4 marks)
- Describe how equity can be thought of as a call option. Develop a numerical example. (4 marks)
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
