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To: RetiredNow who wrote (63078)2/11/2003 5:45:16 PM
From: GVTucker  Respond to of 77400
 
Yes, they'll arrive at a fair market value. They're going to arrive at that fair market value by asking two (or maybe it was three?) investment banks to come up with a price they'd make a market in those options. My point was that the primary tool that the investment banks would use would be Black-Scholes (or technically a modified Black-Scholes, such as the Cox-Rubenstein model).