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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Don Lloyd who wrote (76472)2/24/2000 12:26:00 AM
From: Skeeter Bug  Read Replies (1) | Respond to of 132070
 
if a company issues stock options with a strike equal to the current share price or below, then the opportunity cost is what the company could have sold these options for in a free market.

this may be a lot or it may not be a lot - or it may be impossible to value.

i guess it isn't proper to say msft lost out on the opportunity for $60b due to their esops b/c the opportunity cost takes into account the time frame of the decisions and the value of the options in that time frame.

complex issue, but nobody cares. msft ALWAYS goes up b/c investors are REALLY smart ;-)