Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.21

+0.2%

3:59 PM EST

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To: kapkan4u who wrote (172982)	2/10/2003 4:41:42 PM
From: GVTucker	Read Replies (1) of 186894

kapkan4u, RE: 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. You need to make one adjustment. The publicly quoted options are "American" options that can be exercised at any time. Most employee options are kind of "European", in that they can't be exercised for a period of time, and thus have less time value. As an aside, Black-Scholes is much simpler to use when calculating the value of a European option.

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