Publications

Publications

Filter Results: (566) Arrow Down

Show Results For

← Page 2 of 566 Results →
  • October 2001 (Revised February 2007)
  • Background Note

Accounting for Employee Stock Options

Employees who have been granted stock options have the right to purchase shares of their company's stock at a specified price within a specified time period. The accounting for such employee stock options has been a controversial and complex topic for decades. The... View Details
Keywords: Employee Stock Ownership Plan; Accounting
Related
  • December 2001
  • Exercise

Exercise on Employee Stock Option Dilution

By: Brian J. Hall
Discusses the effects of option dilution on stock prices and shareholder value. To simplify the example and isolate the complexity of option dilution, we make a number of simplifying assumptions. View Details
Keywords: Stocks; Price; Employee Stock Ownership Plan; Business and Shareholder Relations; Complexity; Value
Related
  • January 1995
  • Case

Keller Fund's Option Investment Strategies, The

By: W. Carl Kester
A closed-end mutual fund's decision to study option trading provides an opportunity to study the profit profile and pricing of multiple option investment strategies (e.g., buy a call, buy a put, write a call, buy stock-write call, etc.). This case is designed to... View Details
Keywords: Investment Funds; Stock Options; Profit; Price; Strategy; Financial Services Industry
Related
  • April 2005 (Revised February 2006)
  • Background Note

Note on Option Valuation

For every option, a fair price has to be established. But how do you actually price an option? Assuming a basic knowledge of options, this note covers two pricing methods: the binominal tree and the Black-Scholes/Merton formula. View Details
Keywords: Valuation; Stock Options
Related
  • Web

The Spread and Adoption of Option Pricing Models - Option Pricing in Theory & Practice: The Nobel Prize Research of Robert C. Merton - Exhibits - Historical Collections

HBS Quick Links HBS Home MBA Executive Education Doctoral Programs Faculty and Research Alumni Publishing Site Index HBS Home Contact Us Map/Directions Option Pricing in Theory & Practice: The Nobel Prize... View Details
  • 10 Sep 2009
  • News

We Don't Need a Public Option

  • 2025
  • Working Paper

How Do Households Suppress the Price of Tail Risk?

By: Laurent Calvet, Claire Célérier, Gordon Liao and Boris Vallée
This paper investigates the effects of the issuance of retail products with non-linear payoffs on option prices. For a given underlying asset, when the outstanding volume of products embedding a short-put position increases, implied volatility at the corresponding... View Details
Keywords: Security Design; Dividend; Options; Structured Products; Market Segmentation; Financial Instruments; Design; Volatility; Markets; Segmentation
Related
  • Web

Option Pricing in Theory & Practice: The Nobel Prize Research of Robert C. Merton

HBS Quick Links HBS Home MBA Executive Education Doctoral Programs Faculty and Research Alumni Publishing Site Index HBS Home Contact Us Map/Directions Option Pricing in Theory & Practice: The Nobel Prize... View Details
  • 09 May 2000
  • Research & Ideas

Stock Options Are Not All Created Equal

years of weak performance (and low stock values). To see how that works, let's look at the pay of a hypothetical CEO whom I'll call John. As part of his pay plan, John receives $1 million in at-the-money options each year. In the first... View Details
Keywords: by Brian Hall
  • May 2009
  • Teaching Note

Nextel Partners: Put Option (TN)

By: Timothy A. Luehrman
Teaching Note for [207-128] View Details
Keywords: Business and Shareholder Relations; Voting; Price; Public Ownership; Valuation; Financial Liquidity; Stock Options; Management Practices and Processes; Telecommunications Industry
Related
  • 2001
  • Working Paper

Do Underwater Executive Stock Options Still Align Incentives? The Effect of Stock Price Movements on Managerial Incentive-Alignment

Related
  • 2008
  • Simulation

Pricing Simulation: Universal Car Rental

By: John T. Gourville
This web-based simulation presents an engaging context in which students develop their knowledge of pricing by managing a rental car operation (Universal) in Florida and improve regional performance by developing a pricing strategy. The simulation involves three... View Details
Keywords: Competition; Consumer Behavior; Price; Profit; Renting or Rental; Auto Industry; Service Industry; Miami; Orlando; Tampa
Related
  • February 1995
  • Teaching Note

Corporate Financial Management: Options Exercises (TN)

By: Timothy A. Luehrman
Teaching Note for (9-293-095). View Details
Keywords: Decisions; Price; Stock Options; Theory; Investment; Corporate Finance
Related
  • 01 Apr 2002
  • News

Underwater Options May Not Sink Incentives

motivated when payoff requires such a daunting climb? A clear temptation, and a path pursued by many firms, is to reduce strike prices or award new options reflecting lower stock values. But, as HBS... View Details
Keywords: Lisa Muelbroek; Li Jin; Colleges, Universities, and Professional Schools; Educational Services
  • 17 May 2019
  • News

Tackling high Rx prices

  • June 1977
  • Article

An Analytic Derivation of the Cost of Deposit Insurance and Loan Guarantees : An Application of Modern Option Pricing Theory

By: Robert C. Merton
Keywords: Cost; Insurance; Financing and Loans; Price; Theory
Related
  • Web

Introduction - Option Pricing in Theory & Practice: The Nobel Prize Research of Robert C. Merton - Exhibits - Historical Collections

HBS Quick Links HBS Home MBA Executive Education Doctoral Programs Faculty and Research Alumni Publishing Site Index HBS Home Contact Us Map/Directions Option Pricing in Theory & Practice: The Nobel Prize... View Details
  • 28 Jun 2004
  • Research & Ideas

How to Avoid a Price Increase

When product companies see the cost of materials rise, the result for consumers is often a price increase (gasoline) or, less often, a smaller amount of product at the same price (potato chips). Which View Details
Keywords: by Manda Salls
  • Web

Introduction - Option Pricing in Theory & Practice: The Nobel Prize Research of Robert C. Merton - Exhibits - Historical Collections

HBS Quick Links HBS Home MBA Executive Education Doctoral Programs Faculty and Research Alumni Publishing Site Index HBS Home Contact Us Map/Directions Option Pricing in Theory & Practice: The Nobel Prize... View Details
  • Web

Prelude - Option Pricing in Theory & Practice: The Nobel Prize Research of Robert C. Merton - Exhibits - Historical Collections

HBS Quick Links HBS Home MBA Executive Education Doctoral Programs Faculty and Research Alumni Publishing Site Index HBS Home Contact Us Map/Directions Option Pricing in Theory & Practice: The Nobel Prize... View Details