Stamps.com 2001 Annual Report Download - page 66

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2001 2000 1999
---- ---- ----
Expected dividend yield...... -- -- --
Risk-free interest rate...... 5.00% 5.50%
5.50%
Expected volatility.......... 100% 142%
50%
Expected life (in years)..... 5 9 4
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no vesting restrictions
and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock
price volatility. Because the Company's employee stock options have characteristics significantly different from those of traded options, and
because changes in the subjective input assumptions can materially affect the fair value estimates, in management's
F-20
2002. EDGAR Online, Inc.