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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 227.35+0.3%Dec 19 9:30 AM EST

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To: Oeconomicus who wrote (145326)8/13/2002 12:07:54 PM
From: GST  Read Replies (1) of 164684
 
1) Options -- no mater what their restrictions, have value the instant they are granted. That is the time to calculate the premium. There is nothing punitive about recognizing the premium value of the options granted.

2) The company does expend cash -- the cash they expend is the cash they do not collect from selling the premium in the open market. There is nothing theoretical about that.

3) Expensing options requires nothing more than a method of calculating the premium at the time they are issued. There is nothing about the future to estimate and nothing in the future to adjust. There is no issue of making adjustments ever -- the premium is the premium and it is expensed.

4) For the employee, options are compensation, not an asset. If the employee quits, nothing is owed the company -- it is not an asset for the company either.
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