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

To: hueyone who wrote (178520)	7/7/2004 10:06:16 PM
From: rkral	Read Replies (2) \| Respond to of 186894

re: Fuzzy Math and Stock Options I got to wondering about the numbers should House Bill H.R.3574 become law. For Intel for 2003 ... Options granted to all employees (A) 109.9 mln Weighted-average exercise (B) $ 20.22 Weighted-average fair value (C) $ 9.02 Option expense per FASB (= A x C) $991 mln Options granted to "top 5 paid" employees (D) 2.65 mln Minimum value (E) $ 1.52 Option expense per H.R.3574 (= D x E) $ 4.0 mln So the amortizable option expense would drop from $991 mln to $4 mln. What a joke!!! Ron P.S. Weighted average exercise for the "top 5 paid" employees assumed to be the same as for all employees. I verified the disclosed $9.02 fair value using Black-Scholes, and then changed the volatility from the disclosed 54% to 0.001% so as to obtain the "minimum value".