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To: Oeconomicus who wrote (145062)	8/8/2002 5:58:04 PM
From: GST	Read Replies (2) \| Respond to of 164684

I see -- so you are telling me that Citigroup is not going to show options expense on the profit and loss statement -- do I have that right?

To: Oeconomicus who wrote (145062)	8/8/2002 10:12:43 PM
From: GST	Read Replies (1) \| Respond to of 164684

"No. Selling options (calls) on the open market would not result in income being recorded, no matter the exercise price, term, or price at which they are sold. It would be a capital transaction, impacting only the equity accounts of the balance sheet." Let me give you a more directly related question: In the past, MSFT sold tens of millions of dollars in puts -- where do you think the proceeds from these sales would go? The income statement? Or the balance sheet?