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Contrary to your statement about how it could be __surprisingly accurate__, it would in fact be the opposite. There is no accurate way to build a calculator to
by hashtag 13y ago
Contrary to your statement about how it could be __surprisingly accurate__, it would in fact be the opposite. There is no accurate way to build a calculator to show different liquidity outcomes because there are way too many unknown variables if you understand how stocks actually work in a given company. Everything would have to be a complete guess in the dark for the employee punching in those numbers making it near impossible to get anything accurate, particularly early stage.
- xerophtye 13y agoOn the contrary, "How much does the company need to be worth for my options to be worth $X?" can be answered with a surprising amount of accuracy. Because isn't that basic mathematics with the variables "Exercise Price" and "Stock price"? I am talking about value of options for EXERCISE here, not selling them off. The selling part is what gets a little complicated, but we have ways to price them as well so a calculator for that could be built as well.
- hashtag 13y agoUnfortunately no. You are making some bad assumptions here. I won't get into all the details as it can get lengthy to type out but there are numerous factors missing.