Company B is going to issue 4,000 stock option (400,000 shares) on its common stock to the top executives today. The exercise price on the stock option is $35 per share. If past experience dictates that the executives will exercise their option by the 9th year on average and that the variance of stock returns is .26 (annual), calculate the value of these stock options assuming a dividend yield of 1% and a risk free rate of 4%. The stock is trading at $22 per share. Find the value of the employee stock option using the Black Scholes Model