Palmon, Oded; Bar-Yosef, Sasson; Chen, Ren-Raw; … - In: Journal of Banking & Finance 32 (2008) 2, pp. 229-239
This paper evaluates the common practice of setting the strike prices of executive option plans at-the-money. Hall and Murphy [Hall, Brian, Murphy, Kevin J., 2000. Optimal exercise prices for executive stock options. American Economic Review 90 (2), 209-214] claim this practice to be optimal...