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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Saturn V who wrote (174513)	5/12/2003 8:32:45 PM
From: rkral	Read Replies (1) \| Respond to of 186894

OT ... Saturn V, re "Since the amount is zero, the option bashers are up in arms." Well, there are some people that are against options .. and some people that are against not expensing options. To whom do you refer? re "So most company do not give out options below market price, because the IRS would immediately value the option by the 'Intrinsic Value Method', and the employee would be taxed right away ... " I understand what you're saying .. but even an ATM call option has value .. and that's what the Black-Scholes option model values. So why doesn't the IRS treat the option agreement as a barter transaction .. services for options .. and tax the value of the ATM options? re "The dilution method is not discussed in the FASAB link." Am I going to have to guess what you mean by the dilution method? Regards, Ron