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Share beased payments and fair value of a share option

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Share beased payments and fair value of a share option

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarP2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • August 9, 2017 at 5:13 pm #401194
    Avatartrendline
    Member
    • Topics: 21
    • Replies: 14
    • ☆

    Just by way of interest, how would you work out the FV of a share option?

    Presumably using Black-Scholes??

    Thanks

    August 10, 2017 at 4:39 pm #401370
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Yes but that is left until P4. There are other option pricing models too but Black-Scholes is the one primarily used. Don’t stress though as we’ll be given any fair value in the question.

    Thanks

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