Oracle Corporation (ORCL) Message Board

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Technology Stocks : Oracle Corporation (ORCL)

ORCL 157.47

+0.2%

12:53 PM EST

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To: John F. Dowd who wrote (6481)	3/17/1998 2:52:00 PM
From: lml	Read Replies (1) of 19080

Gotta run, John, so I'll make this quick. In reference to your understanding that a holder of the derivative participates 100% in the appreciation of ORCL stock, I assume you referred to the following language in the press release: "The Supplemental Redemption Amount is calculated by multiplying the % change in Oracle Corporation stock over the term of the Note by the $10 principal amount. The Supplemental Redemption Amount may be zero, but will not be less than zero." If you'll note, the % the holder participate, while equivalent to the % appreciation of ORCL stock, is only a % of the $10 face value of the security. So if ORCL trades @ $30 today & trades @ $60 in 2003, the holder receive 100% on his $10 investment, or $10; ML pockets the balance of $20 on the $30 per share appreciation. Hopes this helps.

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