Stock options are widely used as a form of compensation for corporate executives and have been the subject of much debate in the accounting profession. The most current guidance, ASC 718, CompensationStock Compensation, was issued in June 2018 and is still being implemented. ASC 718 originated primarily from the guidance in SFAS No. 123R.

1. Identify five different methods that had been proposed for determining the value of executive stock options before the release of ASC 718.
2. Discuss the conceptual merits of each of these proposed methods.