Easily determine the fair market value of your Employee Stock Options (ESOs) with our advanced Black-Scholes calculator. Understand the true worth of your company stock options for better financial planning, investment decisions, and tax implications. Input key financial data to get an accurate valuation quickly and efficiently.
Formula:
The Black-Scholes model for call options (adjusted for dividends) is typically presented as:
C = S * e-qT * N(d1) - K * e-rT * N(d2)
Where:
d1 = [ln(S / K) + (r - q + σ2 / 2) * T] / (σ * √T)
d2 = d1 - σ * √T
And:
- C = Call Option Value
- S = Current Stock Price
- K = Option Strike Price
- T = Time to Expiration (in years)
- r = Risk-Free Interest Rate (decimal)
- q = Annual Dividend Yield (decimal)
- σ = Volatility (decimal)
- N(x) = Cumulative Standard Normal Distribution Function
- e = Euler's number (approx. 2.71828)
- ln = Natural logarithm