Opponents argue that the fair value of stock options cannot be reliably measured for financial statements, especially using measures like the Black-Schools-Merton method. The difficulty stems from...

Opponents argue that the fair value of stock options cannot be reliably measured for financial statements, especially using measures like the Black-Schools-Merton method. The difficulty stems from trying to predict the present value of employee options, which depend on future share price movements but cannot be traded on any open market.