Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 19, 2006 erstellt
Description:
We introduce a model that captures the main properties that characterize employee stock options (ESO), in particular, the likelihood of early voluntary exercise and the obligation to exercise immediately if the employee leaves the firm, except if this happens before options are vested, in which case the options are forfeited. We derive an analytic formula for the price of the ESO and analyze its properties and sensitivity with respect to the model parameters