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> Stock options are, 99% of the time, worth $0. They are also, 1% of the time, worth >$100K. Some people have a tough time valuing volatile assets and end up
by abalone 10y ago
> Stock options are, 99% of the time, worth $0.
They are also, 1% of the time, worth >$100K.
Some people have a tough time valuing volatile assets and end up making statements like this.. "they're not really worth anything" or "treat them like they're $0". But it's utterly wrong to say they have no intrinsic monetary value. It's more correct to call them volatile assets -- or even more correctly, a risk-free (in terms of capital) option to purchase a volatile asset.