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Technology Stocks : Intel Corporation (INTC)

INTC 36.28

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3:58 PM EST

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To: Elmer Phud who wrote (177823)	5/6/2004 11:32:23 PM
From: rkral	Read Replies (1) of 186894

OT ... elmerp, re "What if you simply granted the laborer an option to buy your car at fail market value? Have you suffered an expense?" Good countering question and my answer is "yes", there is an "expense". The barter of labor for the option to buy the car is an exchange of fair value. If it weren't, a knowledgeable householder and knowledgeable laborer would not agree to the terms of the barter. Therefore, if the fair value of shingling the house is $X, the fair value of the option is also $X, and $X is the (labor) expense of shingling the house. Whether or not the option is exercised is irrelevant. The strike price for the option is also irrelevant. re "I got my first company options about 15 years ago." Sorry, but an option grantee does not necessarily understand the accounting and tax aspects of options. I was, and maybe still am, a living example of that. <g> Ron

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