Comment on Ask HN: Is it possible to exercise options without providing the cash yourself?Comments−donsupreme3yI am not an expert at all in stock options.But how can the company estimate the current value at $10 when their FMV is $2?−vivegi3yI think the OP means the strike price of $2 was the FMV when the options were issued. The current value is the company's estimate of FMV right now.Estimate is used since the company hasn't IPOd yet. So, valuation is private.
Comments
I am not an expert at all in stock options.
But how can the company estimate the current value at $10 when their FMV is $2?
I think the OP means the strike price of $2 was the FMV when the options were issued. The current value is the company's estimate of FMV right now.
Estimate is used since the company hasn't IPOd yet. So, valuation is private.