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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: ptanner who wrote (177809)5/6/2004 8:40:33 PM
From: Elmer Phud  Read Replies (2) of 186894
 
ptanner -

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

You're right but the point is that it will gain value. An option is not guaranteed to do so.

This is all included within the valuation of the option grants through Black-Scholes.

Seems to me that calculates the value to the receiver. Doesn't this also assume that the grantor would have sold CCs if they hadn't granted the options instead? Again, I can see value to the receiver but I just don't see any expense to the grantor except opportunity lost in the CC premium.
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