I am not an expert at all in stock options. But how can the company estimate the... | Hacker News

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donsupreme on Feb 3, 2023 | parent | context | favorite | on: Ask HN: Is it possible to exercise options without...

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?

vivegi on Feb 3, 2023 [–]

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.

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