At first glance, executive stock options with reload provisions appear to be more complicated than conventional options, and thus the valuation of such options would appear to be more difficult. But, as the authors demonstrate in this article, such reload options provide the employee with a...

This paper examines the decision to exercise employee stock options (ESOs). Our results indicate a positive relation between the extent of quot;earlyquot; exercise and the unhedged risk of the option. Specifically we document a positive relation between the variance of ESO returns and the extent...

This paper examines the decision to exercise employee stock options (ESOs). Our results indicate a positive relation between the extent of quot;earlyquot; exercise and the unhedged risk of the option. Specifically we document a positive relation between the variance of ESO returns and the extent...