Frequently Asked Questions.
  • Who are the typical users of "OptionX" (online version) or "Option123, v. 6.0 (standard version) "?
  • We are a private company, how can we use it?
  • Do I need to know "Binomail Option Pricing Model" or "Black-Scholes Option Pricing Model" in order to use it?
  • Many people say that FAS 123 (R) (superseded by FASB ASC Topic 718 - Stock Compensation) is rather complicated, will that be
    a problem in using "OptionX" or "Option123, v. 6.0?
  • I know Excel spreadsheet, a pretty simple program developed by Microsoft, but both "Binomial Model" and "Black-Scholes Option
    Pricing Model" are pretty complicated, it seems … You know what I mean.
  • Can tax rate be adjustable at the date of forfeiture / estimate when allocating expense over the vesting period?
  • We download the price data (daily, weekly, and monthly) of our stock from http://finance.yahoo.com, can "OptionX" or "Option123,
    v. 6.0" download the historical data on the Internet automatically?
  • I have purchased your software; how can we manipulate "volatility" calculation?
  • How can I conduct sensitivity analysis by using "OptionX" or "Option123, v.6.0"?
  • Do you have customer support in case I have questions in using "OptionX" or "Option123, v.6.0"?
  • What's your credit policy in case I need to return "Option123, v.6.0 (standard version)"?
  • I notice that you accept business checks for payment by using "Internet Check", how does "Internet Check" work?
  • Do you ship internationally? If you do, how much is the Shipping & Handling cost?
Who are the typical users of "OptionX" (online version) or "Option123, v. 6.0 (standard version) "?

Typically, if there is an equity compensation plan at your company, and you want to automate the management, such as tracking
its plan, computing the fair value, and preparing the SEC reports, with much less money, it will be a wise decision to buy
"OptionX" or "Option123, v. 6.0".

However, many of our customers also purchase it for automatically valuing warrants, debts, and other derivatives.

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We are a private company, how can we use it?

"OptionX" or "Option123, v. 6.0" works for both public and non-public companies. For a public company, volatility is required and
can be computed to estimate the fair value of stock options by using "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.

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Do I need to know "Binomial Option Pricing Model" or "Black-Scholes Option Pricing Model" in order to use "OptionX" or
"Option123, v. 6.0"?

No, it is not necessary (but helpful) for you to understand "Binomial Option Pricing Model" or "Black-Scholes Option Pricing
Model" in order to use our Program. Both "Binomial Option Pricing Model" and "Black-Scholes Option Pricing Model" are among
the most sophisticated applications of mathematics in finance. "OptionX" or "Option123, v. 6.0" can calaulate option pricing
using both models with a single click of the mouse.

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Many people say that FAS 123 (R) (superseded by FASB ASC Topic 718 - Stock Compensation) is rather complicated, will
that be a problem in using "OptionX" or "Option123, v. 6.0"?

Frankly speaking, FAS 123 (R) (superseded by FASB ASC Topic 718 - Stock Compensation) is pretty complicated. However, it
won't be a problem to use "OptionX" or "Option123, v. 6.0". FAS 123 (R) (superseded by FASB ASC Topic 718 - Stock
Compensation) requires all companies to expense and disclose reports regarding employee options. As mentioned in our
web-site, "OptionX" or "Option123, v. 6.0" is designed to assist companies in calculating the estimated fair value of employee
stock options and similar awards as required by FAS 123 (R). It helps you, in a much simple way, expense the far value of
employee stock options besides assisting you in tracking your equity compensation plan. On December 16, 2004, the Financial
Accounting Standards Board (FASB) issued FASB Statement No. 123 (revised 2004), which is a revision of FASB Statement No.
123, "Accounting for Stock-Based Compensation". FAS 123(R) supersedes APB Opinion No. 25, "Accounting for Stock Issued to
Employees", and amends FASB Statement No. 95, "Statement of Cash Flows". "OptionX" or "Option123 v. 6.0" reflects the
changes in FAS 123 (R).

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I know Excel spreadsheet, a pretty simple program developed by Microsoft, but both "Binomial Model and "Black-Scholes
Option Pricing Model" are rather complicated, it seems … You know what I mean.

Excel is one of the most popular office application software in business world. We simply prefer to making complicated things
as simple as possible, rather than reinventing the wheel. In fact, we have used Visual Basic for Application to program the most
complicated components in "OptionX" or "Option123, v. 6.0". In many cases, Excel spreadsheets are just places to input, store
and display data. As far as we know, other software companies also use similar programs, such as Visual Basic, MS Access
and etc., to develop similar application software packages.

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Can tax rate be adjustable at the date of forfeiture / estimate when allocating expense over the vesting period?

Yes. "OptionX" or "Option123, v. 6.0" is able to adjust deferred tax accounts for any tax rate changes that arise during the vesting
period, while other similar programs do not.

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We download the price data (daily, weekly, and monthly) of our stock from http://finance.yahoo.com, can "OptionX" or
"Option123, v. 6.0" down load the historical data on the Internet automatically?

Yes, one of the new functions that "OptionX" or "Option123, v.6.0" developed is to automatically download the historical stock
price info and dividend data on the Internet. Of course, it is not realistic for us to test the downloading for every stock on the U.S.
market, but we believe that it will work for all U.S. stocks as long as their historical stock/dividend information is available on
Yahoo!'s finance page.  You may also simply copy and paste the stock price data from your record, just make sure to sort the
price data first in an ascending order.

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I have purchased "OptionX" or "Option123, v. 6.0", how can we manipulate "volatility" calculation?

The historical volatility calculation is presented on the top of stock price worksheet. However, you may not manipulate the
volatility calculation there, other than on "Value" worksheet. Usually, volatility can be manipulated by changing the expected life
of options. It is a mouse work to compute the volatility for a grant item.

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How can I conduct sensitivity analysis by using "OptionX" or "Option123, v. 6.0"?

It is simply a mouse work to do sensitivity analysis by using "OptionX" or "Option123, v. 6.0". It provides for each single grant
with sensitivity analysis by assuming these changes: stock price of underlying assets, volatility, estimated life of option, and risk-
free rate by calculating the following 5 Greeks: Delta, Gamma, Vega, Theta, and Rho at the same time when fair value is
computed for each grant.

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Do you have customer support in case I have any questions in using "OptionX" or "Option123, v. 6.0"?

Yes! We think that customer support is the most important for us to be in business. All current customers (will be notified
separately) may get on-line support from our customer services department.

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What's your credit policy in case I need to return "Option123, v. 6.0"(standard version)?

Our credit policy is "30 day money back guarantee" for the delivered items. If you are not satisfied with your purchase, please
simply return the package in its original condition within 30 days and we will refund your money except S&H with no questions
asked. This policy does not apply to "OptionX" (online version), consulting services, or any license subscription plans.

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I notice that you accept business checks for payment by using "Internet Check", how does "Internet Check" work?

We do accept business checks for payment. We have an agreement with Interactive Technologies, Inc. to process the payment
by "Internet Check". Once you fax us the check, we will use the data printed on the check to complete the payment process. You
may also key in the information on our secured web site by yourself. In any case, please do not send us the original check. For
more information, please visit www.paybycheck.com.

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Do you ship internationally? If you do, how much is the Shipping & Handling cost?

Yes, we do ship internationally. The S&H costs(not refundable) are presented on the Order Form.  For U.S. domestic overnight
shipping, the S&H charge is $34.95; For upgrade/international users, please pay $15.00 extra. If software package, upgrade or
renewal is delivered online by email at our discretion, $34.95 S&H fee (not refundable) will still be charged for online delivery
processing.

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Option123 TM   

Simple solutions for financial professionals on
complicated option valuations and beyond...
Terms are subject to change without prior written notices.  Contact us via Email: service@option123.com

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license/service agreement.