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    Fair Value of Stock Options

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    Do you think the fair value method is an accurate way for an organization to recognize compensation expense related to the options?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:49 am ad1c9bdddf
    https://brainmass.com/business/stock-based-compensation/fair-value-stock-options-596515

    Solution Preview

    Fair value method is not an accurate way for an organization to recognize compensation expense related to the option. The inaccuracy comes in because the market value is used in fair value calculations. One of the common methods used for fair value of stock is the ...

    Solution Summary

    This solution explains different facets of fair value method of calculating the value of stock option expense. The sources used are also included in the solution.

    $2.19