| Understanding Option Valuation Theory—Valuing Employee Stock Options
Program Type: Recorded Webinar (Audio, PPT Presentation)
Program Level: Basic
Prerequisites: Previous training or experience with the fundamentals of the subject matter.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credit: Two (2) Hours
Fields of Study: Accounting; Auditing-Governmental
Shipping Weight: 0lbs. 0oz.
This webinar will introduce to you how to build a risk-free portfolio using the Option Valuation Theory. This webinar will review option valuation models as well as the value-relevant differences in employee stock options (ESOs) and traded options. It will also review the ESOs of publicly traded versus closely held companies and will conclude with the guidelines valuators should use to evaluate and select the most appropriate valuation model for a given option and standard of value.
After completing this webinar, attendees will be able to:
- Evaluate and explain the value-critical assumptions and principles underlying the Black-Scholes and lattice-option valuation models
- Evaluate and explain critical differences between traded call options, employee stock options, and stock warrants
- Identify value-critical features of common employee stock options not found in traded options
- Evaluate the appropriateness of alternative option valuation models based on option features and the standard of value
- Utilize option valuation models to determine defensible estimates of option values
- Rigorously evaluate and critique the work of other appraisers pertaining to the valuation of employee stock options
Who Should Attend
All professionals who deal with employee stock options need to know this material including management, business appraisers, auditors, and attorneys
Keith Sellers, PhD
Mr. Keith Sellers is associate professor of Accountancy at the University of Denver. He has published in numerous journals including Journal of Accountancy, The Value Examiner, Business Valuation Review, Valuation Strategies, Accounting Horizons, Journal of the American Taxation Association, National Tax Journal, and Research in Accounting Regulation. Dr. Sellers is president of Financial Valuation Services, Inc. and cofounder of Derivative Valuation Services, a software development and consulting company specializing in the valuation of employee stock options and other equity derivative instruments.
Brett A. King, PhD
Mr. Brett King is a professor of Finance and State Farm professor of Risk Management at the University of North Alabama (UNA), and coordinator of Graduate Programs for the School of Business. Prior to obtaining his doctorate in Finance from the University of Alabama in 2000, King was a financial analyst for Wells Fargo in Atlanta for three years. He has presented his research findings at numerous professional and scholarly meetings. In addition to accounting-related research, Dr. King is also active in the fields of corporate finance, investments, and political economics. His research has been published in numerous academic and professional journals, including Advances in Financial Planning & Forecasting, Journal of Law and Financial Management, Business Valuation Review, Valuation Strategies and the Journal of Accountancy. Dr. King is the president of Derivative Valuation Associates and is co-editor of The Journal of Business, Industry and Economics.