SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Curbstone who wrote (122065)7/24/2002 6:00:17 PM
From: Cooters  Respond to of 152472
 
So, if an option is expensed and then expires unexercised will it be counted back as income and the EPS increase due to less shares outstanding?

Curb,

Only negative prognosis allowed. You are banned.



To: Curbstone who wrote (122065)7/24/2002 7:19:32 PM
From: Stock Farmer  Respond to of 152472
 
if an option is expensed and then expires unexercised ...

Yes. But only for those options that weren't factored into the estimated expiry that also goes into that Black Scholes estimate. The computation embraces a probability distribution of prices, which includes prices below strike (aka 0 value).

John



To: Curbstone who wrote (122065)7/24/2002 8:45:11 PM
From: bafi403  Read Replies (1) | Respond to of 152472
 
If you buy health insurance and expense the premium today, should it be returned to you as income at the end of the year if you don't get sick by the end of the year? Options, like insurance contracts, are contingent claims with value today regardless of the final outcome. Anything of value that is given away in a compensation package should be expensed at its market value at the time of issue.

bafi403


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News