All of the following statements regarding the valuation of employee stock options are correct EXCEPT:

1. The options must be valued to the extent that employers financially recognize the cost of options when they vest.
2. Options that are not publicly traded have no readily ascertainable market value.
3. A well-known model for the valuation is the Black-Scholes options pricing model.
4. Among several factors that comprise the calculation of an option are the option exercise price and the current price if the underlying stock.
5. The intrinsic value of an option is the difference between the underlying stock's current market price and the option's expected dividend yield in perpetuity.