In options there are two important numbers the current stock price and the strike price. Assuming the stock price is higher than the strike price the option is

In options there are two important numbers the current stock price and the strike price. Assuming the stock price is higher than the strike price the option is worth the difference between the two. I am a little unclear about the "$36,000's-worth". I assume that that is the face value of the 9,000 shares. So if $36k is the value of the underlying stock than the share price is $4. The same $4 a share that the stock was worth when your options were issued. The new options were issued for $1 a share with a $4 stock price. Assuming that there was a buyer for the shares at the current price of $4 the options could be exercised today and be worth $27k. $4 - $1 = $3 per share profit X 9,000 shares = $27,000. Some valuation examples Price Theirs Yours $4 $27k $0 $5 $36k $37.5k $6 $45k $75k $7 $54k $112.5k $10 $81k $225k What the options are worth today is really a minor concern. You control substantially more shares than the people who have just been issued options. If the company succeeds you all walk away with a bunch of money. If it doesn't, well none of you are going to make anything from your options.