Backdating option scandal


The Options Strategy Evaluation Tool (OSET) is Excel-based options analysis software for the evaluation of options trading strategies -- including the evaluation of follow-up strategies when things may not have turned out as planned. OSET will price all options using either the Black-Scholes model or the Cox, Ross and Rubinstein binomial model.

The Options Strategy Evaluation Tool (OSET) lets you construct and evaluate various strategies made up of combinations of trades in puts and calls plus trades in the underlying asset. Options can be declared as being of American or European-style exercise.

All the benefits of an internet application but running directly from your PC, without the lag.

User account information and backtest history are stored on our secure servers allowing you to access the same information from wherever you are, even on different PC's.

Furthermore, many of these same executives are also receiving a benefit (ie: cash) that helps them pay the taxes that they incur on these perks. Read on to learn more about this type of compensation and how it can affect investors. Back in the 1980s Congress imposed an excise tax on "golden parachutes," the lucrative severance benefits that were given to top executives if the company was taken over by another firm.

View feature highlights Run on-line guided tour (8.5 minutes) This picture is an example of a pay-off diagram from the Options Strategy Evaluation Tool.That is, boards would simply compensate their executives so that any taxes they incurred upon a change in control would be covered.Over the years, this compensation practice expanded to cover taxes that senior executives incurred on many other sources of income (including perks).For a shorter piece with a few practical tips see Backdating – it’s illegal isn’t it?Setting aside such issues, avoiding unwanted side effects of backdating contracts can be tricky, especially when the purported effective date of an agreement is several months before the date it was actually signed, as can be seen in involves the ownership of a promissory note that was made to a bank in connection with a loan.Dividends paid on the underlying asset can be specified as being discrete (up to four individual payments, each consisting of an amount and an ex-dividend date) or as continuous (yield pa).

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