ESO Toolkit – realactuarialconsulting

Eso Tool Kit

Real Consulting offers a range of software which allows clients to create their own valuation models based on the specific situation of each business. Our software will allow your company to calculate its own risk options, saving time and money! More importantly, doing it right.

Software and Consulting Highlights

Our software is developed by Dr. Johnathan Mun, advisor to FASB on FAS 123.

Use the same software FASB uses! Software was used by FASB to create the valuation example in the 2004 FAS 123 (Appendix A87).

Our software can also be used for valuating ESO under other accounting standards such as IFRS2 and HKFRS2.

Our software models both closed-form models (Black-Scholes) as well as different binomial and trinomial lattices.

Theories are all covered extensively in the author's books and articles - use the published books/research to successfully defend an audit

All equations are visible within Excel when creating your own option valuation models.

Costs a lot less than expensive consultants... have the ability to check their work instead!

Have the ability to compare the naïve Black-Scholes versus more sophisticated binomial lattice results (FASB's preferred method).

Software and Consulting Highlights

American Closed-Form Models

Binomial and Trinomial Lattices

European Black-Scholes

Create your own custom options

Types of Employee Stock Options Solved

Blackout Periods

Changing Forfeiture Rates

Changing Risk-free Rates

Changing Volatilities

Forfeiture Rates (Pre- and Post-vesting)

Stock Price Barrier Requirements

Suboptimal Exercise Behaviour Multiple

Vesting Periods

All Other Exotic Variables