Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

Stock options are leveraged instruments that derive their value from an underlying security, such as a stock. This makes them ...

As we’ve previously said, equity compensation in general—and stock options in particular—is a critical component of any startup company’s ability to recruit and retain talent. But there is perhaps ...

As new traders flood the market, a return to the basics may help novices understand the fundamentals of options trading. Stock options are contracts that represent the right to buy (or sell) shares of ...

Forbes contributors publish independent expert analyses and insights. Bruce makes the law and tax code understandable to everyone. When you receive a grant of stock options, it is imperative that you ...

Employers offer many forms of compensation besides cash, with employee stock options being a popular choice. Instead of ...

Options contracts give the right to buy or sell stock at set prices, potentially profitable. There are call (buy) and put (sell) options; employee stock options are typically call options. Options' ...