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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (84)	6/20/2002 12:18:34 PM
From: rkral	Read Replies (2) \| Respond to of 786

From the professor: "In fact, it is roughly the present value of this excess [edit: of stock price over exercise price] that a valuation model such as the Black-Scholes model attempts to estimate when assigning a value to stock options on the date of grant." Ron: This viewpoint, also espoused by John Shannon, is just incorrect imo. The above is quoted from siliconinvestor.com. I was wrong. The viewpoint expressed by the professor is correct. I erroneously assigned John Shannon's usage of that statement to the professor. My apologies to you, John, and the professor. IMHO, John believes the estimate provided at the grant date, by Black-Scholes or whatever, is not an actual cost. I believe it is. The professor did not express a viewpoint, one way or the other. Huey, do me a favor please. Press the palms and fingers of your hands together tightly. Keeping your palms together, "interleave" your fingers and thumbs. Then note the relative position of your thumbs. Which thumb is on top? The left or right? Let me know. Thanks, Ron