< Return to previous page

Research Center : Article

May 01,2005 | Chicago Consulting Actuaries

Demystifying Volatility

FAS 123R brought the valuation of share-based compensation from the opaque depths of financial statements footnotes to the forefront. It has created an immediate need for companies to understand the valuation models, key assumptions, and the financial implications. Setting assumptions is as important as selecting the valuation model. The volatility of the underlying stock price is among the most influential assumptions for an option valuation.

About Us

The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.


P.O. Box 21639 Concord, CA 94521-0639 Telephone: (925) 685-9271 Fax: (925) 930-9284

©NASPP 2019, All Rights Reserved.