Re:Do the math on your stock options
by patio11 on Thursday December 31, 2015 @02:32PM
(#10819213)
My understanding is that strike price can be virtually unboundedly below current valuation of the share, given particular circumstances of a company, which makes this calculation quite sensitive to the valuation.
A call option on a share of Google with a strike price of $50 is worth a heck of a lot more than a call option on "name any startup" with a strike price of a tenth of a penny.
There are, naturally, cash flow implications to this.
A call option on a share of Google with a strike price of $50 is worth a heck of a lot more than a call option on "name any startup" with a strike price of a tenth of a penny.
There are, naturally, cash flow implications to this.