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Black-Scholes Stock Option Template (Call Option)
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Use this template to calculate the fair market value of a single stock option (or virtual stock option / phantom share, assuming it has an exercise price).
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The risk-free rate is typically based on the 10-year yield of a government bond, e.g. US Treasury yield or UK Gilt yield.
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For volatility, you can use our reference values for private companies or input your own (we recommend the latter especially if your company is publicly listed).
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Input
Volatility Reference Values / Assumptions
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Current Share Price10.00Seed-stage startup150%
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Strike / Exercise Price10.00Series A / B startup100%
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Option Term / Exercise Window (years)10Late stage startup / scaleup (C+)70%
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Risk-Free Rate3.50%NASDAQ (approx.)20%
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Volatility (annual)100%
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Output
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Fair Market Value per Stock Option9.05
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Use the calculator below to determine the number of stock options for a new hire or an employee's refresher grant based on the targeted fair market value of their equity package.
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This number is specific to your organisation based on the inputs above, so please ensure that especially the current share price & strike price are accurate.
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Candidate / Employee Offer Simulator
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Target Market Value of Equity Grant50,000
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Number of Stock Options Required5,526
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