They do - they basically all use the Black-Scholes Model [0] and just plug in the numbers.
I assume most of the cost of these 409a's is for the backside covering aspect - if the IRS says how did your come up with your pricing you can point them in the direction of someone "serious" and blame them if they typed in the wrong numbers.
I assume most of the cost of these 409a's is for the backside covering aspect - if the IRS says how did your come up with your pricing you can point them in the direction of someone "serious" and blame them if they typed in the wrong numbers.
[0] http://en.wikipedia.org/wiki/Black–Scholes_model