The figure shows the result as $14.69, the answer that FASB uses in its example. The forfeiture rate of 3% in FASB’s example is applied outside of the model to discount for the quantity reduced over time. The software allows the ability to input the forfeiture rates (pre- and post-vesting) inside or outside of the model. In this specific example, we set forfeiture rate to zero in the figure below and the option quantity is adjusted outside, just as FASB does, in A91:

«The number of options expected to vest is estimated to be 821,406 (900,000 × .973).»