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Technology Stocks : Intel Corporation (INTC)
INTC 36.20+0.1%Dec 26 3:59 PM EST
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To: Lizzie Tudor who wrote (178409)6/26/2004 1:42:16 PM
From: rkral  Read Replies (1) of 186894
 
OT ... Lizzie, re "Under the accounting board's proposed rule, companies would be allowed to use a newer, more adjustable method for determining the cost of options. "

I think that's just a comparison of the fair-value and intrinsic-value methods. For "intrinsic value", the value is simply the difference between the exercise and stock prices on the day of grant -- a no-brainer. For "fair value", the volatility, the option life, and the risk-free interest rate must be estimated.

Different estimators would arrive at different estimates, but to suspect that manipulation will occur is cynical IMO.

Ron

But
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