Determine the fair value of employee stock options granted by Amazon Inc. using the Black-Scholes option pricing model. Amazon's stock price is $2,000 per share, the exercise price of the options is $2,100, the risk-free interest rate is 4%, the volatility of Amazon's stock returns is 30%, and the time to expiration is one year. Calculate the fair value of the employee stock options and discuss the implications for Amazon's compensation expenses and shareholder dilution.

• Black-Scholes Option Pricing Model: