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Biotech / Medical : GZMO -- Ignore unavailable to you. Want to Upgrade?


To: rkrw who wrote (247)3/9/2000 10:18:00 PM
From: Biomaven  Read Replies (1) | Respond to of 438
 
Genzyme holds a buyback option on GZMO.

As rkrw correctly points out, this option is priced based on GZMO's fair market value price. This means that GENZ stock should not appreciate just because GZMO stock rises. When GZMO appreciates the GENZ option just gets more expensive. Only if GENZ could buy GZMO at a fixed price would one expect GENZ to appreciate whenever GZMO does.

Peter