What are the main models for stock option valuation, and how do they differ?
Mathematical models for valuing stock options fit into two families: the Black-Scholes model and the “lattice” models. What these try to value in stock options is the “option” that gives you the ability to purchase shares at a fixed priced for a set term. Although the models were developed for tradable listed options, with some modifications they can apply to employee stock options too… To read the rest of this answer, please sign in or register below.
