T Stock Method
Trying to create a waterfall / cap table and was wondering what the method is for this.
I know its:
Options Outstanding x (1 - ____)
is it share price / strike price or strike price over share price?
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options x ((share price - strike price) / share price). Just think about it intuitively. If I have 10 shares, and the strike price was 0, and they are now worth 1 dollar, then I get 1 dollar per share and since each share is worth 1 dollar I get 10 shares = 10 dollars. Conversely, if the strike price was 50 cents, now I only get 50 cents per share, which is half, so I'd get 5 shares = 5 dollars.
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