How to Calculate the Stockholders Cost of Stock Option Incentive

摘要：

In this paper we discuss the risk discount and cost of stock option contracts based on theory analysis and arithmetic operation. First the calculation of data shows that expectation value cost increases with tbe rise of exercise price, with the same result as the previous prediction. Meanwhile, B-S cost can become larger or smaller with higher exercise price, which suggests that tbe expectation value cost is more reasonable. Then we explore the relationship between the expectation value cost and the B-S cost in stock option contracts based on theory analysis and discover the rational explanations for the above conclusion.

关键词： the B-S cost the ezpectation value cost managers value risk-averse the risk discount

作者: Caiyu Zhang Guoqing Huo Kcping Lu

作者单位: School of Management Graduate University of Chinese Academy of Sciences, Beijing, China School of Mathematics Henan University Kaifeng China

会议类型: 国际会议

会议名称: The Second International Conference on Business Intelligence and Financial Engineering(BIFE 2009)(第二届商务智能与金融工程国际会议)

会议地点: 北京

会议语种:英文

页码: 355-359

在线出版日期: 2009-07-24（万方平台首次上网日期，不代表论文的发表时间）