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To: David E. Taylor who wrote (114685)	2/27/2002 8:41:50 PM
From: rkral	Respond to of 152472

no "time value" as such associated with the employee stock option grants au contraire - imho, when the stock price is equal to (or less than) the strike price, which is usually the case on the grant date, the stock options have no intrinsic value and, therefore, their value is 100% time value Ron

To: David E. Taylor who wrote (114685)	2/27/2002 9:28:44 PM
From: Wyätt Gwyön	Respond to of 152472

There's no "time value" as such associated with the employee stock option grants sorry but i totally disagree, although i guess you can make "as such" mean whatever you like. the publicly traded options and the Black-Scholes formula show exactly what the value is. sorry i missed your post on Black-Scholes and don't know which you are referring to. but if you believe there is no such thing as time value, then there is no point to using Black-Scholes imho.

To: David E. Taylor who wrote (114685)	2/27/2002 11:50:15 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 152472

david, we can solve this problem immediately. those folks who got creamed by the amt tax show us that a few people are not able to make good decisions re: their finances. they want to change laws to expunge their million dollar tax debts. well... in the spirit of making rules for the lowest common denominator... 1. force employees to sell stock the instance the exercise. the company withholds taxes. 2. the company can take the value of the stock minus the grant price and run it down the income statement. voila, irresponsible kiddies don't turn millions in gains into millions in losses and companies have to report their employee expenses accurately.