Category: Tax Issues and Planning
Field of Study: Taxes
Audience: HR Managers, HR Generalists
Level of Difficulty: Advanced
Delivery Method: Self-Study
Some college level courses with moderate algebraic training
This course teaches you how to place a future value on stock options using the Black-Scholes method. We explain each step of the Black-Scholes formula, describing the consequences of its assumptions and the reason why ten different companies might derive ten different values. Then we look at the alternatives to this formula, including the intrinsic value method.
- Explain the role of stock options in executive compensation packages
- Understand the elements and assumptions of the Black-Scholes formula
- Derive a value (or values using differing assumptions) with an online calculator
- Explain advantages and disadvantages of expensing stock options
*The Course Credit Map
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