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Biotech / Medical : GUMM - Eliminate the Common Cold
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To: Mike M who wrote (565)5/9/1999 5:13:00 PM
From: Riverlightning  Read Replies (1) of 5582
 
The problem was in the wording "to buy at market value." It did NOT say today's market value. Just saying market value leads one to believe it could be market value at the time the option is exercised. That is why I asked for clarification. If it is the market value at the date of granting the options and they are good for 5 years, I would say they gave too much away. Why would that be necessary? These type of options are often exercisable at a price HIGHER than current MV to give extra incentive to increase the value of the stock beyond that which normally occurs in many stocks. So what exactly is the deal here and why?
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