A Critical Review of the Fair Value Settlement Procedure for Stock Options
Abstract
We review the European practice of fair value settlement of stock options after a successful takeover bid. We argue on both fundamental and practical grounds that the inherent complexity, arbitrariness and inaccuracy of fair value calculations call for replacement by intrinsic value settlement. This alternative is simple, transparent, well-defined, and common practice at other exchangesDownloads
Copyright (c) 2016 Oege Pennin, Martijn J. van den Assem, Remco C.J. Zwinkels
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