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To: Wyätt Gwyön who wrote (125860)	12/5/2002 4:09:16 PM
From: techlvr	Read Replies (1) \| Respond to of 152472

I thought that usually when options are granted, the strike price is set to be approximately what the current stock price is. Therefore, the person receiving the options receives the right to pay full market price for those shares. They only stand to make a profit, and the earnings per share dilution effect if and when they exercise those shares at a higher level. How many options are out there that were granted with a strike price of over 100 per share? What cost is that to the company? What worth to the individual that was granted the options?

To: Wyätt Gwyön who wrote (125860)	12/5/2002 11:50:04 PM
From: Night Trader	Read Replies (1) \| Respond to of 152472

Here's an extensive look at how options affect Dell and shows how the business is effectively being run for the executives rather than the shareholders: Message 17884447 The conclusions would be valid though perhaps not quite so extreme for almost any company that dispenses options freely.

To: Wyätt Gwyön who wrote (125860)	12/12/2002 2:14:02 PM
From: rkral	Read Replies (1) \| Respond to of 152472

OT ... Mucho Maas, a late comment ... the options are amortized over the holding period (say 10 yrs) Actually, the options are amortized over the vesting period. Options with a life of 10 years, which vest linearly over 5 years, will likely be amortized 20% per annum IMHO. The SFAS 123 fair value method requires recognition of the cost before (or as) vesting occurs. Additionally, you claim to answer kkirby's question about adjustment to income should the market price vary from what it was on the grant date .. but I don't "see" the answer. Ron