Employee stock options revolutionized with infinite reloads and shout features!
The article explores how employee stock options with reload provisions and shout features can be valued and exercised optimally. It shows a connection between the price functions of these options and reveals that the value of an employee reload option can be linked to a shout call option and a forward contract. The study also uncovers that the behavior of when to exercise these options depends on factors like dividend yield, interest rate, and volatility. Overall, the research sheds light on the optimal stopping policies for contingent claims with multiple stopping rights.