Saturday, December 5, 2020

Retirement Options

When dealing with option valuation, you should always remember is that an option always has value until it is exercised or expires. And, more importantly, an option can never have a negative value. COVID-19 lockdowns and the resulting economic uncertainty have affected many colleges and universities. In August, a top private university offered its faculty members over 70 a chance to accept a buyout if they retire by June 2021. In response, the faculty responded negatively to the buyout plan, essentially arguing against being offered something of value, the option to retire with a buyout, for nothing.