Since Google has a higher stock price, all else equal it will have higher option value.
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Right now, however, it has carved a competitive position with tremendous option value.
The Blackstone public offering clearly demonstrated that fair market value for a profits interest is option value.
Fair market value of a profits interest in an investment fund is option value, which can be readily calculated, not zero.
Maximize option value by actively seeking out those opportunities to build new skills -- either in your current role or by taking on a new role at your organization.
In sum, the driverless car provides Google with tremendous future business option value, all for less than what GM has spent on Super Bowl commercials over the last decade.
But the Bain managers may have put profits interests in family trusts at the time of the creation of the funds, arguing that the option value was really low.
Given our main tech focus the consequences of failure are losing one times our money, but the large markets make the option value of success very attractive in our view.
Writing skills, general management experience, technical and computer skills, people smarts, and international experience or language skills are examples of skills with what we call high option value -- that is, they are transferable to a wide range of possible options.
So Vinny, the high school graduate from New Jersey with hair coming up from under his shirt, now had to run his bond trades next to a PhD from MIT who could use mathematical models to understand the option value of the security.
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Since oil prices and other factors are uncertain, in other words, the mere option to produce has value.
It can happen if, say, the stock price and the exercise price are so close that the option holder sees no value in paying the commissions to exercise.
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This may be the best-known danger in derivatives dealing: everyone in the markets knows that if shares stop trading or the share prices become much more volatile than expected, an option's market value will differ from the model's valuation.
Almost everyone seems to love Cathay Pacific for its smooth service and fantastic Hong Kong hub, but with an 81-inch-long first class bed, flat beds in business class, and shell seats in economy (meaning that even if the person in front of you reclines, their chair-back does not), Cathay's a particularly comfortable option for those who value their personal space.
The value that a company assigned to an executive's stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time.
Adaptec, a technology company, recently changed its buyback justification from meeting share-option purchases to improving shareholder value.
But Stamboulie and Hellmann both dismiss the value of this option.
You can even put a value on that option, using estimates of future volatility in real oil prices and the same formula used to evaluate stock options.
You also can donate through Plastic Jungle, which gives you the option of giving the full value of your card to needy schools through DonorsChoose.org.
Other things being equal, the value of an option in a company that retains all its after-tax profits is considerably greater than in one that makes a meaningful distribution.
This figure includes base salary, bonus and long-term incentive plan payouts, and the value realized from stock option exercises and other benefits.
Using options allows one to enjoy a greater level of volatility as the strikes being away from the market turn all option premium over to the time value.
There is a third part to the value of Monsanto, its option on increased global food demand.
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As many games have little replay value once completed, the option to receive compensation for used games is an especially attractive one for gamers.
There is also the option of inflation, which destroys the value of the dollar and the other currencies that are linked to the dollar.
But those same customers might not value being given only the option of a bundle without the ability to buy a burger alone, he says.
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Were American weapons on day-to-day alert to be dismantled or otherwise disabled, however, more than a "launch on warning" option would be foreclosed: The deterrent value of the United States' arsenal would be eviscerated since, as a practical matter, it would be politically (if not technically) problematic to restore these weapons to operational status.
It adds that another option is to mitigate the impact of high food prices by reducing other taxes, including Value Added Tax, but given the government's poor finances this option is not a serious one.
The AP formula does not count changes in the present value of pension benefits or stock option gains such as those recognized by Zuckerberg did last year.
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