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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: rudedog who wrote (44059)5/1/2000 1:19:00 PM
From: Sir Francis Drake  Respond to of 74651
 
I don't know the details of this deal. However, it is possible, that there may be a kind of arrangement you described ("number of shares of MSFT stock that have an equivalent value"), because if you are not dealing w/ puts on an open market, but private party arrangements, you can structure them all sorts of ways. I suspect, the latter is the case - though I have no personal knowledge of the details.

Morgan



To: rudedog who wrote (44059)5/1/2000 1:27:00 PM
From: sandeep  Respond to of 74651
 
Let's say I hold a put contract written by MSFT with 70 strike and the closing price is 60. When I exercise it, they could pay me 10, increase the outstanding float by 100 shares, adjust their stock portfolio to contain those 100 shares and show that as a losing investment in their investment portfolio.