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3 pages. Excerpt: The Financial Accounting Standard Board's (FASB) Exposure Draft on amendments to FASB Statement No. 123 states that a lattice-based option valuation model (e.g., binomial) is preferable to a closed-form model (e.g., Black-Scholes-Merton) ... This letter was written in a collaborative effort with Equity Methods (specialists in the field of employee stock option valuation) and is meant to provide a technical framework regarding lattice-based option valuation models.
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