Hi,

I am doing research which requires me to calculate a variable of Overconfidence measure for CEOs.

The Holder67 measure computed following the procedure in Malmendier, Tate, and Yan (2011). We start by computing a ‘Confidence’ variable, which is defined as the ‘value per vested option’ scaled by the ‘average strike price’ of those options. The ‘value per vested option’ in year t is the total value of the vested but unexercised options (ExecuComp: “opt_unex_exer_est_val”) scaled by the number of those options (ExeuComp: “opt_unex_exer_num”). The average strike price is the stock price at the time the option-value is determined(CRSP:“prcc_f”) less the value-per-vested option. This works on the premise that the value-per-vested option is essentially st −X, where st is the stock price at time t and X is the strike price. Holder67 is then an indicator that equals one from the first year in which the ‘Confidence’ variable equals 0.67 if this ‘Confidence’ variable equals 0.67 on at least two occasions.

I have calculated and coded up to 'Confidence' measure, however, I need help in coding the Holder 67 which is " Holder67 is then an indicator that equals one from the first year in which the ‘Confidence’ variable equals 0.67 if this ‘Confidence’ variable equals 0.67 on at least two occasions."

Thanks in advance