Stock Option Grant Agreements

In this section, we use the usual 10-year grant term until expiration to demonstrate the risk and duration of return associated with owning OS. The value of an option consists of the inner value and the time value. The time value depends on the time remaining until expiration (the date on which the OSes expire) and several other variables. Since most ESOs have an indicated expiration date of up to 10 years from the date the option is awarded, their current value can be quite significant.. . .

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