Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 159.62

-3.9%

3:59 PM EST

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To: JohnG who wrote (118972)	5/19/2002 4:19:04 PM
From: Clarksterh	Read Replies (1) of 152472

John - My problem is that no one knows how ti discount the strike price. The stock may never reach the strike price or it could happen in a couple of years. Thus, picking a time for the stock market price to reach the strike price is quite impossible. I'm not sure I've understood you correctly, but I think that the answer to your problem is that there is an excepted method of pricing a newly issued option. It is the Black-Scholes (sp?) method referred to in Q's 10-K (in the section where they discuss the pro-forma earnings as if stock options were something they had to buy on the open market at the time of issuance - which of course they do not.) BTW - If isn't that I am a Qualcomm bull (inre near term stock price), or that I hate accounting for options in financial reports. I just dislike accounting for options twice (e.g. both in the diluted stock figures and in earnings) or in the least informative possible way (e.g. price of options exercised vs their strike price, which is an assumption that the company bought the shares just as they were exercised.). Clark

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