1 - How to calculate or decide the current price & exercise price in a case study of BSOP model. I mean to say on what basis we will decide which one will be current price & which one will be exercise price in a case or scenario.
2 - I have come across in several question the cost of equity has calculated on asset beta or un geared beta rather than geared/equity beta. is it correct to calculate the Ke on asset beta. if it is on what circumstances Ke will be calculated on asset beta.
Pls help me out.
Thanks.