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To: Skeeter Bug who wrote (94410)4/15/2001 11:48:17 PM
From: Don Lloyd  Respond to of 436258
 
sb -

repricing options is so "last week." why? there are negative tax implications. msft didn't reprice options when their price cratered - the doubled down. yes, they just double the # of options at the lower strike price to avoid the tax liability associated with repricing....

It's not obvious to me why there would be a tax liability for re-pricing options when both halves of the process are innocent of tax consequences in and of themselves. Of course, if it were obvious, it would be an illegal part of the tax code. -g-

Regards, Don