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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 232.52

+0.1%

Dec 26 9:30 AM EST

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To: Bill Harmond who wrote (145421)	8/13/2002 11:55:04 PM
From: GST	Read Replies (1) of 164684

"What happens if the option expires worthless?" Same as if I buy an option and it expires worthless -- I don't get the premium back, it is water under the bridge. The dilution effect of options is not handled on the income statement -- it is a completely separate issue. What belongs on the income statement is the premium -- and it does not matter one bit what happens after the options are issued or at least vested. The only point of debate will be whether to expense them at the moment of issue or the moment they vest. There will be arguments on both sides of this issue.

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