How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 488.02

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Dec 24 12:59 PM EST

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To: Just_Observing who wrote (21570)	4/25/1999 5:17:00 PM
From: blankmind	Read Replies (1) of 74651

- actually, per the 1998 10K, Microsoft received $538 mill for issuing put options - which is about $130 mill/qtr - 1 put option obligates MSFT to buy one share of stock from the buyer - at say $75 a share for 2 years - if the share drops to $50, then MSFT would have to pay $75. That's how MSFT could lose - however, if MSFT shares goes to $75.01, and never drops below $75.01, then why would the option holder want to sell the share to MSFT for $75? He wouldn't. Instead, he'd call up his broker at Merrill Lynch & get $80, 90, or $100

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