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To: willcousa who wrote (161401)3/7/2002 3:51:55 PM
From: AK2004  Read Replies (1) | Respond to of 186894
 
willcousa
re: Looks like printing paper to buy services to me.
well, printing is definitely a cost <gggggg>
re: Of course, the shareholders get their EPS diluted and that is reflected in the financials.
remind me where did you see that adjustment again

but seriously speaking, that is if you are interested:
1) option is not a share and hence no dilution happened
2) there is a cost because someone else now have a claim
3) cost is less than dilution because the option may never be exercised.
4) pricing formulas / algorithms assumption dependent and company is free to set the assumptions to their liking.

-Albert