Qualcomm Incorporated (QCOM) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 174.01

-0.3%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Wyätt Gwyön who wrote (125898)	12/6/2002 11:53:51 AM
From: carranza2	Read Replies (1) of 152472

Help me here, mucho, as I have not studied the options issue as throughly as you obviously have. No misinterpretation, just ignorance. I do know how to ask a question or two, so bear with me. It seems inevitable to me that the present value of an option to be exercised at some point in the future has to bear some relationship to the projected value of the stock within the timeframe of the option's life. Am I missing something? What do you suggest should be the appropriate method for evaluating the present value of an option for purposes of expensing it? I see the term Black-Scholes bandied about here, but I'm damned if anyone has defined it in any way I can understand. I guess the conceptual problem I'm having is that it seems unrealistic to value the worth of an option today when it is likely that in the normal scheme of things the option won't be exercised until later, perhaps years later, at a time when the cost to the corporation of providing the stock to the employee simply can't be calculated with any degree of accuracy. The option clearly has some value at the time of issuance, but it seems that defining it is very problematical. How do you suggest that a corporation take into account subsequent bear markets and underwater options?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next