Background (55k pdf) Report by Professors John Hull and Alan White, Rotman School of Management. August 2002
Calculations may
take several seconds
when using the
Binomial Tree method.
The Basic FASB 123 calculator values an employee stock option using the basic approach suggested in FASB 123. The value can be calculated using either the Black-Scholes model or the binomial tree model.
Once all the data has been entered, click outside the data entry cells and then click on "Calculate" to display the results.
You can set the employee exit rate during the vesting period to zero. This is appropriate if you plan to account for employee stock options by assuming that all options vest and then reverse the expense for those that do not in fact vest.
*The employee exit rate is the percentage of employees in the category being considered who leave the company each year.
We hope that you will find this option calculator a convenient tool but we are providing it on an "as is" basis - we do not warrant its performance nor do we accept responsibility for the use you make of it and in no event shall we be liable for any damages arising out of its use.
