Warrants and Management Options - Valuation Model
  • Warrants and Management Options - Valuation Model
Originally published: 20/06/2016 10:05
Publication number: ELQ-91646-1
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Warrants and Management Options - Valuation Model

Model for valuing options that result in dilution of the underlying stock.

financemanagement optionsoptions pricingstockvaluation modelwarrants

This program is designed to value options, the exercise of which can create more shares and thus affect the stock price. This is the case with warrants and management options. It is also the case with convertible bonds. As a general rule, using an unadjusted option pricing model to value these options will overstate their value.

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)

This business tool includes
1 Excel Model File

Prof. Aswath Damodaran offers you this business tool for free!

download for free


Further information

The objective of this model is to get the following output:
- value of the call

It is useful in valuing warrants and management options


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