When should you exercise nonqualified stock options? You need a decision-making process that removes guesswork and emotions. Otherwise, you're likely to exercise too soon or too late.
Your company just gave you a stock option grant, or your existing options are underwater. You wonder: "What are my stock options worth? Are they worth anything at all?" Learn about different valuation methods, including Black-Scholes.
Journal of Accountancy
Show More Articles (1 more)
Compare the major models used to value options at grant: Black-Scholes-Merton and lattice. If you're good at crunching numbers, you can build your own spreadsheet.
The Wharton School, University of Pennsylvania
Research shows that employees tend to misunderstand the basic workings of stock options. In many instances, there is a gap between the actual value of an option grant and what the employee thinks the options are worth.