Black-Scholes Valuations

Course Contents

1. Introduction
   - page 1
   • Overview
     - page 1
2. Employee Stock Options
   - page 2
   • Dimensions of Employee Stock Options
     - page 3
   • Types of Employee Stock Options
     - page 4
   • What’s the Value of an Option?
     - page 5
3. History of Black-Scholes
   - page 6
4. Option Trading
   - page 7
   • Derivatives
     - page 7
     • Forwards
       - page 8
     • Options
       - page 8
5. Black-Scholes Formula
   - page 9
   • Theory
     - page 10
   • Fraction Factors
     - page 11
   • Assumptions
     - page 12
   • Graphic Example
     - page 13
   • Online Calculators
     - page 13
6. Uses for Black-Scholes
   - page 14
   • Employee Uses
     - page 14
   • Corporate Uses
     - page 15
7. Corporate Accounting
   - page 16
   • Balance Sheet Foonote
     - page 16
     • Interactive Exercise
       - page 17
   • Expensing Stock Options
     - page 18
   • Criticisms of Black-Scholes
     - page 18
   • Alternatives to Black-Scholes
     - page 19
8. Summary
   - page 20