The Assumptions Scenario page enables you to manage scenarios. Scenarios can
be Added, Edited, Viewed and Deleted.
The Add button brings up a screen that allows for a scenario to be setup.
The selections available are:
1. Award Type: NQ, ISO, SAR, RSA and RSU
2. Valuation Model: Black-Scholes-Merton, Lattice Barrier Model, Hull White II
Lattice Model. Note that these selections are available only for NQ, ISO and SAR.
3. Valuation Method: By Grant, By Vesting Tranche
Different combination of selections are available when the values in #2 and #3 are
selected. These include:
a. Volatility and Volatility Assumptions
b. Risk-Free Rate and Risk-Free Rate Assumptions
c. Dividend Yield and Dividend Yield Assumptions
d. Post-Vest Cancellation Rate
e. Sub-optimal Exercise Factor (Barrier)
f. Hull-White II parameters
Once these selections are made, the Assumption Scenario requires to be named.
This name shows up on the previous screen where all assumptions scenarios can
be managed.
Save saves the assumption scenario.
Back takes you back to the Assumptions Scenario management screen.
Reset clears all values.