Upon signing your employment contract, you received options with a strike price of $50 for 10,000 shares of company stock. As is fairly common, your stock options have a three-year vesting period and a 10-year expiration, meaning that your cannot exercise the options for a period of three years, and you lose them if you leave before they vest. After the three-year vesting period, you can exercise the options at any time. Thus, the employee stock options are European (and subject to forfeit) for the first three years and American afterward. Of course, you cannot sell the options nor can you enter into any sort of hedging agreement. If you leave the company after the options vest, you must exercise within 90 days of forfeit.

Exotic Cuisines stock is currently trading at $24.38 per share, a slight increase from the initial offering price last year. There are no market-traded options on the companys stock. Because the company has been traded for only about a year, you are reluctant to use the historical returns to estimate the standard deviation of the stocks return. However, you have estimated that the average annual standard deviation for restaurant company stocks is about 55 percent. Because Exotic Cuisines is a newer restaurant chain, you decide to use a 60 percent standard deviation in your calculations. The company is relatively young, and you expect that all earnings will be reinvested back into the company for the near future. Therefore, you expect no dividends will be paid for at least the next 10 years. A three-year Treasury note currently has a yield of 3.8 percent, and a 10-year Treasury note has a yield of 4.4 percent

You are trying to value your options using BSM Model. What values would you assign, using 3-year and 10-year as the time to maturity?