Employee Stock Options
Published Online: 15 MAY 2010
Copyright © 2010 John Wiley & Sons, Ltd. All rights reserved.
Encyclopedia of Quantitative Finance
How to Cite
Henderson, V. and Sun, J. 2010. Employee Stock Options. Encyclopedia of Quantitative Finance. .
- Published Online: 15 MAY 2010
This article gives a brief introduction to employee stock options. We describe the common features of such options, give statistics on their usage around the world, describe observed exercise patterns, and discuss the literature on modeling exercise behavior, the valuation of employee options, and their cost to the company.
- employee stock options;
- American options;
- early exercise;
- utility-indifference pricing;
- incomplete markets