This may be a simple question but I wonder if Im oversimplifying it. I'm trying to decide how to value different Stock Employee compensations and in particular a Stock Appreciation Rights (SAR) Reward. A good definition is provided here. Assuming I am modeling the Stock Option prices via a standard Black Scholes framework, with continuous constant dividends, can I just use the same framework to model the SAR, except taking the Strike Price as 0? I assume no turnover or intervening event.
Edit: Strike Price should be the stock price at the time of granting and not 0.