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Politics : Ask Michael Burke

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To: jim kelley who wrote (41639)	12/31/1998 2:17:00 AM
From: Merritt	Read Replies (1) of 132070

JK: I may be a weak-minded ignoramus, but there are a couple of things that have managed to seep through my thick skull, and into my poor little pea brain. <<<It is a balance sheet transaction. It is not investment income. This is done as part of an authorized stock buyback program. They get to buy back their stock on the open market at a significant discount this way>>> When you sell a put, you are obligated to buy back the shares at the strike price. The purchaser of the put isn't required to sell you that stock at the strike price. We're all ignorant about something, and it's no sin. To willfully persist in one's ignorance is stupidity.

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