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To: ptanner who wrote (177809)	5/6/2004 8:03:18 PM
From: brushwud	Read Replies (1) \| Respond to of 186894

Does the options expense occur at the time of granting or vesting? It would accrue linearly from the date of grant until the option is fully vested.

To: ptanner who wrote (177809)	5/6/2004 8:40:33 PM
From: Elmer Phud	Read Replies (2) \| Respond to of 186894

ptanner - I thought a zero coupon bond was one that paid no interest but instead would be offered at a discount to the face value. You're right but the point is that it will gain value. An option is not guaranteed to do so. This is all included within the valuation of the option grants through Black-Scholes. Seems to me that calculates the value to the receiver. Doesn't this also assume that the grantor would have sold CCs if they hadn't granted the options instead? Again, I can see value to the receiver but I just don't see any expense to the grantor except opportunity lost in the CC premium.