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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.50+0.1%Dec 26 3:59 PM EST

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To: Lizzie Tudor who wrote (145443)8/14/2002 12:37:41 AM
From: GST  Read Replies (1) of 164684
 
Liz: At the point of issue the company had three choices -- 1) Issue options to you. 2) Do not issue options to you. 3) Sell options in the open market. The value of the options they could have sold but instead gave to you is the premium. If they sold options and kept the premium it would not matter what happened at expiration -- they would keep the premium. That is income. By giving them to you and not selling them on the open market they gave you the value of the premium -- that is an expense. I have options now on companies -- if they expire worthless do you think I should ask for my money back? Will I get a call saying -- ok lets make some adjustments?
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