Option pricing is always a challenge. I have seen the Black-Scholes Equation used and it was not way off but did result in options being issued at $12 when the market price was at $4 which was a real downer.
Not sure Black-Scholes is appropriate in a BK situation.
In this case I would use RSU's which vest at market price on the vesting dsate. The better job the team does the higher the market price. This shares the risk and responsibility between the team and the company. I agree that options may not be the best in this situation.
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