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To: Lizzie Tudor who wrote (177778)5/5/2004 4:06:59 PM
From: GVTucker  Read Replies (2) | Respond to of 186894
 
Lizzie, RE: Stock options are worthless at grant, with zero investment put forth by the grantee.

They are clearly NOT worthless at grant, otherwise the employees wouldn't care whether they got them or not.

Yes, there is no intrinsic value at grant if the strike price is the same as the market price, as is custom, but that most definitely does not extrapolate to mean that they are worthless at grant.



To: Lizzie Tudor who wrote (177778)5/5/2004 4:14:01 PM
From: Robert O  Respond to of 186894
 
I'm surprised to hear that the value of employee stock options are 'contingent on the work of the recipient' and 'worthless on grant' since, as you say, there is an almost 1-1 direct relationship between work put forth by the grantee and the value of the option. This seems so counter-intuitive, so ludicrous, that indeed, it's wrong ;-)

RO


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