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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (52100)	7/15/2002 1:48:34 PM
From: EnricoPalazzo	Read Replies (2) \| Respond to of 54805

Therefore, I would venture to say that it appears very likely that S&P is using the Black Scholes estimates (SFAS 123) for options expense that companies provide in their notes to the 10ks. which will slightly (although not, i think, materially) overstate the cost, since an employee stock option is slightly less valuable than a "normal" stock option with the same strike price and duration--this is because in order to exercise it, you need to stay with the company. To think about it in another way, 99% of people who quit SEBL will leave some (unvested or out of the money) options on the table. Ethan