Does a stock option have value when it is not matured as of the date of valuation?
New Brunswick, Canada
The following excerpt is from Miller v. Miller, 2003 NBCA 37 (CanLII):
In Buttrum v. Buttrum it was argued that stock options had no value because the right to exercise the option had not matured as of the date of valuation. The trial judge rejected the argument. She held that, while the option lacked intrinsic value because the exercise price exceeded the market price on the valuation date (out of the money), there was still the time-value component. The trial judge accepted that the "value to owner" concept was more appropriate than a “fair market” approach.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Are stock options that are not exercisable by the end of the marriage marital property? (New Brunswick, Canada)
In what circumstances will the actuary carry out a going concern valuation and a solvency valuation? (New Brunswick, Canada)
When is shared custody not a default option? (New Brunswick, Canada)
If the wife’s claim in bankruptcy is unhinged from proprietary vesting concerns, would the wife's claim have been deemed to be “too uncertain” to value? (New Brunswick, Canada)
What is the test for determining the value of real estate for assessment purposes? (New Brunswick, Canada)
How does section 4 of a bill of lading deal with the replacement value of a shipment of potatoes? (New Brunswick, Canada)
When a mortgagee buys a mortgage property at a price that cannot be seen to reasonably reflect the true market value at the time of the sale of the mortgage, is the deficiency calculated at the subsequent sale? (New Brunswick, Canada)
Can a uniformed police officer who was not actively participating in the investigation compel the accused to speak to the accused's lawyer? (New Brunswick, Canada)
Is there an invariable rule that a cell phone will connect to the closest tower to it? (New Brunswick, Canada)
What is the purpose and obligation of the Court of Arbitration for Human Rights in Canada to return a child who has been wrongfully removed or retained to the country of habitual residence? (New Brunswick, Canada)
