409A – January 2025
409A – January 2025 · DLOM models
Protective-put models auditors commonly accept for restricted stock.
Chaffee (1993)
26.06%
Finnerty (2012)
18.68%
Longstaff (1995)
90.00%
Concluded DLOM
22.37%
DLOM models
Assumptions
- Fair market value
- $3.0200
- Volatility
- 50.5%
- Time to liquidity (years)
- 0.0
- Risk-free rate
- 4.29%
- DLOM (Apply)
- 0.0%
Chaffee (1993) — Protective-put models auditors commonly accept for restricted stock.
Finnerty (2012) — average-strike put; no insider information assumed.
Longstaff (1995) — look-back put; treated as an upper bound.