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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 154.53-0.8%Jan 26 3:59 PM EST
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To: rkral who wrote (59100)1/25/2007 9:01:21 PM
From: kech  Read Replies (1) of 197381
 
When someone "exercises an option" doesn't that mean they have to essentially buy the stock? So in this case, doesn't it mean Nokia has to pay a chunk of change to exercise the option? Is it possible this amount of money is more than just the normal royalty rate for the year? Otherwise, why call it exercising an option -- why not just say the date of expiration was extended for a year subject to payment of normal royalties?
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