Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (72172)	8/17/2002 1:34:25 PM
From: jonkai	Read Replies (1) \| Respond to of 74651

Black-scholes is not a good way to evaluate ESOs. you should talk to the Nobel prize committee about taking back the prizes awarded to Black and Scholes..... any and all properly defined option's values can be found on any particular day.... Black and Scholes does not make any mention as to whether the options could be traded among one group of people or not... because it doesn't need to know this to find the value if those options finally ARE traded on any particular day, it gives you the value for them IF THEY WERE sold or bought on any particular day...... each quarter the company can revalue these options, and MSFT does do this..... to reflect the underlying stock price..... so at each quarter MSFT has a very precise calculation for what those options are worth (ALL OF THEM).... and shows them as an expense...... (but only in the very back of their report) not on the income statement... where they belong.... jon.