Fifteen years ago, in fiscal year 2002, Microsoft granted 254,000,000 stock options to its employees as part of their compensation. The options had an expiration of 10 years and an exercise price of $24.27. Assume that Microsoft’s dividend rate was 0%, its stock volatility was 0.39, the risk-free rate was 5.4%, the price of Microsoft stock on the date of grant was $24.27, and the number of shares outstanding was 10,700,000,000.
What was the fair market value of all these 2002 executive stock options on their date of grant, according to the Black-Scholes formula?