BASIC FASB 123 Worksheet

Stock Price ($) 50.00

Exercise Price ($) 50.00
Expected Life (years) 6.85
Time to Vest (years) 3
Employee Exit Rate pre-vesting (% per year) 5.00%

Expected Volatility (% per year) 40.00%

Risk-free rate (% per year) 7.50%
Dividend yield (% per year) 2.50%

Which Model? 1=BlackScholes; 2=Bin. Tree 2

Calculate Option Value

Value of Option 18.52

 ENHANCED FASB 123 Worksheet

Stock Price ($) 130.00

Exercise Price ($) 100.00
Total Life i.e., time to last exercise date (years) 5
Time to Vest (years) 0
Employee Exit Rate pre-vesting (% per year) 0.00%
Employee Exit Rate post-vesting (% per year) 0.00%
Exercise Multiple* 1.31

Expected Volatility (% per year) 40.00%

Risk-free rate (% per year) 3.00%
Dividend yield (% per year) 0.50%

Calculate Value and Expected Time

Value of Option 30.61

Expected Time to Exercise Assuming Option Vests 0.08

*The exercise multiple defines the early exercise strategy.

The option holder voluntarily exercises early if the stock
price is greater than the exercise price times the exercise multiple
 BASIC FASB 123 Worksheet ENHANCED FASB 123 W

Stock Price ($) 50.00

Exercise Price ($) 52.00
Expected Life (years) 6.15
Time to Vest (years) 3
Employee Exit Rate pre-vesting (% per year) 5.00%

Expected Volatility (% per year) 40.00%

Risk-free rate (% per year) 7.50%
Dividend yield (% per year) 2.50%

Which Model? 1=BlackScholes; 2=Bin. Tree 1

Calculate Option Value

Value of Option 17.06

 ENHANCED FASB 123 Worksheet

Stock Price ($) 130.00

Exercise Price ($) 100.00
Total Life i.e., time to last exercise date (years) 5
Time to Vest (years) 0
Employee Exit Rate pre-vesting (% per year) 0.00%
Employee Exit Rate post-vesting (% per year) 0.00%
Exercise Multiple* 1.31

Expected Volatility (% per year) 40.00%

Risk-free rate (% per year) 3.50%
Dividend yield (% per year) 0.50%

Calculate Value and Expected Time

Value of Option 30.62

Expected Time to Exercise Assuming Option Vests 0.07

*The exercise multiple defines the early exercise strategy.

The option holder voluntarily exercises early if the stock
price is greater than the exercise price times the exercise multiple