an options exchange, depending on the option. The market price of an American-style option normally closely follows that of the underlying stock being...

Employee stock options (ESO) is a label that refers to compensation contracts between an employer and an employee that carries some characteristics of...

Stock option expensing is a method of accounting for the value of share options, distributed as incentives to employees within the profit and loss reporting...

Non-qualified stock options (typically abbreviated NSO or NQSO) are stock options which do not qualify for the special treatment accorded to incentive stock options...

share option plans to encourage employee share ownership. To facilitate employee stock ownership, companies may allocate their employees with stock, which...

buy back stock, which often lets investors recoup the initial investment plus capital gains from subsequent rises in stock price. Stock options issued by...

called "put-call parity". Put options are most commonly used in the stock market to protect against a fall in the price of a stock below a specified price....

Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price. Opposite to that are Put options, simply...

asset. Option contracts traded on futures exchanges are mainly American-style, whereas those traded over-the-counter are mainly European. Most stock and...

Incentive stock options (ISOs), are a type of employee stock option that can be granted only to employees and confer a U.S. tax benefit. ISOs are also...

Stock option return calculations provide investors with an easy metric for comparing stock option positions. For example, for two stock option positions...

private-activity municipal bonds, the bargain element of incentive stock options, foreign tax credits, and home equity loan interest deductions. This...

contract known as a "call" or a "put" against stock that they own or are shorting. The seller of a covered option receives compensation, or "premium", for...

In finance, options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which...

shareholders by buying back stock. One other reason for a company to buy back its own stock is to reward holders of stock options. Call option holders are hurt by...

Stock market index option is a type of option, a financial derivative, that is based on stock indices like the S&P 500 or the Dow Jones Industrial Average...

Markets, Inc. is an American company that owns the Chicago Board Options Exchange and the stock exchange operator BATS Global Markets. Founded in 1973 by the...

Employee stock options are call options on the common stock of a company. Their value increases as the company's stock rises. Employee stock options are mostly...

compensation. The median cash compensation was $5.3 million, the median stock and option grants were $9 million. In 2018, the highest-paid CEO in the US was...

shares, redeemable shares, bonus shares, right shares, and employee stock option plan shares. Shares are valued according to the various principles in...

value. However, the option to buy a $39 stock at $30 is worth less than the option to buy a $40 stock at $30. Therefore, option exchanges have formulas...

2005 to include a total of $2.24 billion-worth of expenses related to stock option-based compensation. The grants remained the subject of the formal inquiry...

A naked option or uncovered option is an options strategy where the options contract writer (i.e., the seller) does not hold the underlying asset to cover...

call or put option, Black and Scholes showed that "it is possible to create a hedged position, consisting of a long position in the stock and a short...

company's stock option grant practices. An investigation determined "grant dates were chosen with the benefit of hindsight" to make the options more valuable...

allegations that the company and certain executives had illegally backdated stock option grants. The U.S. Securities and Exchange Commission stated that "KLA...

warrant (or callable bull/bear contract) is a kind of stock option. Specifically, it is a barrier option of the down and out type. It is similar to a vanilla...

SARs resemble employee stock options in that the holder/employee benefits from an increase in stock price. They differ from options in that the holder/employee...

means simultaneously buying a call option and selling a put option. This has the effect of simulating being long on a stock or commodity position. Many hedges...

After an investigation into accounting irregularities relating to stock options, in November 2006 the company's chairman and CEO resigned, which was...