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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (155641)	4/11/2005 1:55:06 PM
From: gzubeck	Read Replies (2) \| Respond to of 275872

Biomaven...why would that be irrelevant? If the stock appreciates to $80 and there are 1 million option contracts at a strike price of $7.30 that would mean that the company would have to come up with $80-7.30 = $727 million to honor those options...isn't this what all the hoopla was about option expensing in the FASB or were they just talking about the expensing value of the option contracts ( out of the money) meaning that they purchased longterm options from someone else thereby mitigating their upside risk...