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Technology Stocks : Intel Corporation (INTC)
INTC 36.15-0.6%Dec 24 12:59 PM EST

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To: GVTucker who wrote (172981)2/10/2003 4:32:34 PM
From: kapkan4u  Read Replies (1) of 186894
 
<But the company is giving away something of value. That is unquestionable.>

Yes, options granted are extremely valuable. Just check the current quotes on INTC at the money ($15) calls expiring in Jan 2005. They are trading at almost $5 a share. They expire in less than two years. Intel gives away at the money options that expire in 10 years, which makes them much more valuable than the two year ones selling for $5 on the open market. I would guess that the value of a 10 year at the money call would be at least $10 and probably quite a bit more.

Kap
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