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To: Brian Sullivan who wrote (50726)	7/26/2002 4:07:43 PM
From: Charles Tutt	Respond to of 64865

No, I had in mind that you would pay tax on the fair market value of the tickets, which would probably be a multiple of (perhaps double) their expected value in a typical lottery (i.e. as if the company had given you the cash, and you had bought the tickets). But your suggestion is interesting, too, and might be more like the Black-Scholes evaluation. We agree about a couple of things -- these hypothetical lottery tickets aren't liquid (although I think in some states it might be illegal to resell state lottery tickets, too), and there's a big delay before they pick the numbers. They might be in your car when it caught fire, too. JMHO. Charles Tutt (SM)