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Technology Stocks : Intel Corporation (INTC)
INTC 48.32-0.8%Jan 15 3:59 PM EST

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To: Elmer Phud who wrote (177856)5/8/2004 11:21:14 AM
From: rkral  Read Replies (1) of 186894
 
OT .. elmerp, re "Surely [ed: option] value does not spontaneously come into being from out of nothingness."

Quite true. In simplistic terms, the value is based on the terms of the options contract, an option contract which does not exist until written and signed. So the contract can be said to "come from out of nothingness."

But the value does not "come from out of nothingness". The option value comes from the obligation to potentially transfer partial ownership of the company .. from existing shareholders .. to employees.

Ron
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