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Technology Stocks : Intel Corporation (INTC)
INTC 48.72+3.0%Jan 14 3:59 PM EST

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To: Elmer Phud who wrote (177813)5/6/2004 8:52:25 PM
From: rkral  Read Replies (1) of 186894
 
OT ... elmerp, re "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."

You're getting closer. It's a barter, in which the company pays the employee with options .. for services rendered. But it is a barter with a dollar value. In effect, the company pays the employee $X with which the employee buys call options valued at $X and so it's (incorrectly IMO) called non-cash compensation.

So the employee is a call buyer and the company is a call writer (seller) .. but it's not a CC.

Ron
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