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Technology Stocks : Intel Corporation (INTC)
INTC 38.16+2.5%Nov 7 9:30 AM EST

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To: The Duke of URL© who wrote (179967)12/20/2004 8:07:40 PM
From: Saturn V  Read Replies (1) of 186894
 
B E C A U S E ..You are double deducting it. When the company issues an option or even the stock itself THE COMPANY EARNINGS DON'T CHANGE A PENNY.

The same is true of the Black-Scholes calculation.

Once on account of the Black Scholes calculation.

And then once again when the eventual dilution does indeed occur when the shares are indeed exercised.

But the dilution based calculation is not subject to the problems of estimating volatility etc.
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