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Technology Stocks : Intel Corporation (INTC)
INTC 46.95-2.8%Jan 16 3:59 PM EST

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To: Elmer Phud who wrote (177353)4/3/2004 7:44:08 AM
From: rkral  Read Replies (1) of 186894
 
elmerp, re "Options are granted at fair market value. They only gain value if the share price rises."

During 2003, Intel granted 109.9 mln options with a weighted-average exercise price of $20.22. Per FASB SFAS 123 Intel reported a fair value of $9.02, or 44.6%, of the exercise. Since the grantees paid 0%, that 44.6% is the value received by the grantee.

Mr. Barrett was granted 1 mln options at $16.42 exercise in January, and 0.35 mln options at $18.63 exercise in April. According to Intel's own numbers, these 1.35 mln options had a combined value -- on the grant dates -- of $10.2 mln = 0.446*(1*16.42 + 0.35*18.63).

Their value on the grant dates remains unchanged by subsequent price action of the underlying stock.

Regards, Ron
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