Analytic pricing of Employee Stock Options (ESO).
One can download here an Excel Add-In.
This add-in, once installed (from Tools --> Add-Ins... --> Browse... ) allows you to compute the value of an employee stock option with the CalcESO function.
This jpg image shows an example of how to use it.
Disclaimer: There is no guarantee that the attached program will properly calculate any specific ESO according to accounting rules. The file is for illustrative purposes only and is not intended for any finanical reports.
We are not responsible for any damage caused by use of this program.
Sometimes for negaitive and large (in absolute value) alphas the result is incorrect due to numerical problems!
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