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

To: rkral who wrote (177857)	5/8/2004 11:53:15 AM
From: Elmer Phud	Read Replies (2) \| Respond to of 186894

Ron - In simplistic terms, the value is based on the terms of the options contract, an option contract which does not exist until written and signed. So the contract can be said to "come from out of nothingness." So if the contract didn't exist before then the value didn't either, no? So the value came from out of the void as well as the contract? Where was the value before the contract was written? I guess you're address that question here: The option value comes from the obligation to potentially transfer partial ownership of the company .. from existing shareholders .. to employees. The obligation is to transfer partial ownership for a price. That price based on fair market value on the day of the grant. Because Intel stands to be compensated at the fair market value, the only potential loss is upside value of the share price and that translates to opportunity loss which I don't think should be charged. IMO.