- This topic has 3 replies, 2 voices, and was last updated 5 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Option pricing model for share based payment valuation
Is the following true?
An option pricing model such as Black Scholes is used to value a cash settled share based payment scheme at each year end during the scheme.
An option pricing model such as Black Scholes is also used to value an equity based share based payment scheme, but only at the grant date.
Thank you.
Yes, why wouldn’t it be? Cash settled schemes are valued at each reporting date, and equity settled at the grant date.
Thanks
Thanks. So Black Scholes is used for both, yes? Not just for equity based.
It is more relevant for equity settled, but could be used too for cash settled if necessary.
Thanks