"If they can see what others would pay for them, then option valuation would become simple for employees."

First, the most commonly used method of option valuation, the Black-Scholes formula, assumes that certain statistical properties of the stock price remain constant over time.

For related discussion - and graphical representation - see section "Interpretation" under Datar-Mathews method for real option valuation.

Various other methods, aimed mainly at practitioners, have been developed for real option valuation.

The modern theory of option valuation began with the publication of an article by Black and Scholes in 1973.

If we assume an efficient market, that should produce a reasonable option valuation without the need to determine the proper parameters for modeling.

Using standard techniques for option valuation, the price is about $125.

This model is used to calculate exotic option valuations which are consistent with observed prices of vanilla options.

The tree successfully produced option valuations consistent with all market prices across strikes and expirations.

Real option valuation has traditionally been concerned with investment under project value uncertainty while assuming the agent has perfect confidence in a specific model.