Use this guide to see if exercising your vested nonqualified stock options 
early makes sense:

1. By what percentage has the stock gained over the options' exercise price?

2. What further percentage gain do you expect in the option stock if you 
hold to expiration?

3. What gain over that period do you expect from an alternative investment?

4. Divide Step 2 by Step 3.

5. Check the table for break-even ratio.

6. If Step 4 is lower than the break-even ratio, exercising your options 
now and reinvesting make sense.


PRESENT GAIN        BREAK-
ON YOUR             EVEN
OPTION STOCK        RATIO

25%                  16%
50                   27
75                   34
100                  40
150                  48
200                  53
300                  60
400                  64
500                  67
1000                 73

DATA: JOEL PHILHOURS AND CHARLES T. HAYS, BUSINESS WEEK