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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: Elmer Phud who wrote (177808)5/6/2004 7:56:07 PM
From: ptanner  Read Replies (2) of 186894
 
re: "A zero coupon bond will be paid interest..."

I thought a zero coupon bond was one that paid no interest but instead would be offered at a discount to the face value.

re: "The option is not guaranteed of ever having any tangible value. Until the grantor suffers an expense there just isn't any expense. IMO. "

This is all included within the valuation of the option grants through Black-Scholes. Certainly taking the expense charge at the time of exercise would provide a definitive value for the expense -- and sometimes this would be zero but more often it would be much more substantial than the volatility adjusted, time premium discounted valuation at the time of issuance.

Care to look at what for example Intel's option program would have cost last year based on those exercised relative to the 10K valuation of those granted?

Different question. Does the options expense occur at the time of granting or vesting? I would think the latter but haven't tried to read the FASB docs.

-PT
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