Companies are slowly—very slowly—considering “binomial” models for valuing stock options, instead of using the more simple Black-Scholes model. That’s according to a recent study by Aon Consulting, which found that—as of August 31, 2005—122 public companies had disclosed they were using a binomial model, up from 36 companies that used a binomial model at the end of 2002.
Among the companies making such announcements was ADP, CDW Corp., Procter & Gamble, and Staples.
