features

Simple solutions for complicated option valuations and corporate reportings.
Pricing employee stock options with the click of a mouse.

Main Features of "Option123 (Excel), v.6.0"

Option123 has simplified the administration of employee stock options, it also automates valuation, expense allocation, and disclosure as required by FAS123(R), FAS128, and FAS148. It basically turns the complicated option valuations, expense allocations, and EPS calculations into a mouse click work. Look at the following summary of these features:

Requirements	Basic Input	What need to do?	Output
Track equity plan, including detail employee information, grant information, equity plans, cancellation/forfeitures and exercise activities, and other information	Basic data entry	"Copy-and-paste" if such data is in spreadsheet format	Equity report by grantee; Equity report by equity plan; Equity report by fiscal year.
Calculate the fair value by using either "Binomial Option Pricing Model" or "Black-Scholes Option Pricing Model" (Non public entities may use the historical volatility of an appropriate industry sector index instead of the expected volatility of the entity's share price).	Expected dividend yield Expected life of options	Click "Calculate Value" button ONCE	Instant fair value report no matter it is for a single grant or for hundreds of grants; If "Binomial" model is selected, two types of inputs can be entered: constant inputs used over the entire term or variable inputs entered separately at each node. Binomial tree simulation can be made for every grant item.
Compute historical volatility based on life of options. (Non public entities may use the historical volatility of an appropriate industry sector index instead of the expected volatility of the entity's share price).	Expected life of options	None (will be automatically computed after clicking "Calculate Value" button)	Historical volatility will be automatically calculated based on the life of option; Automatically compute historical volatility for any period at any date after click "Download Historical Stock Price and Dividend Info" button, which will automatically download historical date on the Internet, absolutely no other data entry required.
Prepare expense allocation, or expense options on a monthly basis for grants from various years	NONE, except the tax rates for taxable grants	Click "Allocate Expense" button ONCE	Expense allocation by grant, by month, and by fiscal year; Summary report for all grants' total compensation, tax deduction, and catch-up adjustment for cancellation/forfeitures; Quarterly and year-to-date expense allocation will be prepared automatically for current fiscal year as required by FAS148.
Prepare diluted shares and EPS calculations under both FAS123(R) and FAS128	Indicate which quarter by entering "1", "2", "3" or "4" and the tax rate for the quarter	Click of "Calculate EPS" button ONCE	Weighted diluted shares outstanding per APB25 for each quarter and year-to-date period (Reference only); Weighted diluted shares outstanding per FAS123(R) for each quarter and year-to-date period; EPS per APB25 for each quarter and year-to-date period (Reference only); EPS per FAS123(R) and FAS128 for each quarter and year-to-date period;
Prepare option information as required on Form 10K and annual report: summary of option outstanding and exercisable for all ranges of exercise price; Weighted average assumptions, including weighted average Expected Volatility, Expected Dividend Yield, Expected Life, Risk-Free Rate, and weighted Black-Scholes Fair Value; Summary of stock option summary; Aggregate option grants, Executive compensation (10K, Item 11)	Enter 5 prices for price ranges	Click of "Update 10 Q-K" button ONCE	Option outstanding and exercisable summary for 10K, Item 8(c); Weighted average assumptions, to be reported in the financial footnotes; Summary of option's weighted average information; Stock price for all quarters; Aggregate grant information by exercise price; Executive compensation assuming stock price appreciation over the grant term at 5% and 10%; Executives' aggregate fiscal year-end value of all options, including options outstanding and options in-the-money.
Obtain daily, weekly, and monthly historical stock price and dividend information for automatically picking-up stock price and calculating historical volatility	NONE	Click "Download Historical Stock Price and Dividend Info" button ONCE	Daily, weekly, and monthly historical stock price and dividend information will be automatically entered in separately worksheet; Dividend information will be automatically entered in proper worksheet for calculation of historical volatility
Conduct sensitivity analysis, analyzing the fair value changes under different scenarios, to justify the estimates of expected life of option, expected volatility, and expected dividend yield.	NONE	Click "Calculate Value" button ONCE	5 Greeks are calculated using Black-Scholes option pricing model at the same time when fair values are calculated: Delta, Gamma, Vega, Theta, and Rho.
Obtain "risk free interest rate" (Zero Coupon Rate, currently not publicly available for free).	NONE	"Copy-and-paste"	Historical interest rates from 1994 are included in the software for your reference; Historical interest rates from 1982 are available for free; Free monthly updates for all our customers of version 5.0 or higher.

Note: All standard purchase order($995.95, including $34.95 of Shipping & Handling Fees) will be shipped overnight without additional charges within 24 hours after receipt of the Order Form.

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Terms are subject to change without prior written notices. Contact us via Email: service@option123.com