Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: A Top-Down Approach for the Multiple Exercises and Valuation of Employee
  Stock Options   We propose a new framework to value employee stock options (ESOs) that
captures multiple exercises of different quantities over time. We also model
the ESO holder's job termination risk and incorporate its impact on the payoffs
of both vested and unvested ESOs. Numerical methods based on Fourier transform
and finite differences are developed and implemented to solve the associated
systems of PDEs. In addition, we introduce a new valuation method based on
maturity randomization that yields analytic formulae for vested and unvested
ESO costs. We examine the cost impact of job termination risk, exercise
intensity, and various contractual features.

29
The categories of this paper are: funct-an
31
The categories of this paper are: ao-sci
28
The categories of this paper are: alg-geom
34
The categories of this paper are: chem-ph
11
The categories of this paper are: hep-lat
18
The categories of this paper are: econ
7
The categories of this paper are: hep-th
10
The categories of this paper are: q-bio
1
The categories of this paper are: cs
25
The categories of this paper are: patt-sol
32
The categories of this paper are: atom-ph
2
The categories of this paper are: math
33
The categories of this paper are: plasm-ph
35
The categories of this paper are: mtrl-th
22
The categories of this paper are: chao-dyn
9
The categories of this paper are: nlin