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Technology Stocks : Intel Corporation (INTC)
INTC 36.38-1.3%Dec 22 3:59 PM EST

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To: ted burton who wrote (169624)8/20/2002 1:21:35 AM
From: kapkan4u  Read Replies (1) of 186894
 
<Do you know any details/specifics? Would they expense the options only when they are exercised? Until they are exercised I don't see what value/cost.>

Employee owned options are not much different from exchange traded ones. While not vested, they are similar to European style options, which are restricted to an exercise date. Fully vested options are similar to American style ones. Either way, the fair value is a function of the duration, distance from the money and the historic volatility of the underlying security. Black-Scholes model is most commonly used to price options. I suspect that FASB will require to price both vested and not vested options against corporate earnings -- a very good development for shareholders.

Kap
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