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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (61164)	8/30/2002 8:37:35 AM
From: willcousa	Read Replies (1) \| Respond to of 77400

An option that does not VEST for 7 years is different from a call option that does not EXPIRE for 7 years. A traded call would be exercisable at any time it becomes advantageous within the 7 year period. An employee option could only be exercised at the end of the 7 years. Many employees will not be around in 7 years to meet the vesting requirement and those options will be absolutely worthless the minute they leave. Sure, you can value them if you have to but is it worth the trouble. You would have to make way too many assumptions.