Options are priced, when they are awarded, to have no present value.
Let me introduce you to my friend Black-Scholes.
An option with a strike price equal to the current stock price very easily can have value, and the ones given to employees frequently have a lot of value. Even though the current strike price is the price of the stock.
Comments
Options are priced, when they are awarded, to have no present value.
Let me introduce you to my friend Black-Scholes.
An option with a strike price equal to the current stock price very easily can have value, and the ones given to employees frequently have a lot of value. Even though the current strike price is the price of the stock.