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Technology Stocks : Intel Corporation (INTC)
INTC 45.51+10.7%Jan 9 9:30 AM EST

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To: Robert O who wrote (177807)5/6/2004 7:44:28 PM
From: Elmer Phud  Read Replies (4) of 186894
 
Robert -

You admit there is value to the option at the time granted. Consider that a legal promise to do something (perhaps be obligated to give you something of value) in the future should be expensed today

It's not of tangible value unless the share price rises. If there is no tangible expense to the grantor then I just don't see any expense. It's ironic that there can be value to the receiver but no expense to the grantor but that's the way it looks to me.

Imagine it's the payment to the a bondholder on a zero coupon bond issued by the company. Unlike the bond it's is not exactly known what the bond payout will be but it can sure be estimated. See now?

No I don't see. A zero coupon bond will be paid interest so you can calculate it because you know what it will be. The option is not guaranteed of ever having any tangible value. Until the grantor suffers an expense there just isn't any expense. IMO.
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