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

To: kpf who wrote (155886)	4/13/2005 11:26:32 AM
From: Biomaven	Read Replies (2) \| Respond to of 275872

Expense is directly proportional to strike price. Really? If so it would be nothing short of just silly. Remember these are all at-the-money options, so really it would be better put that expense is directly proportional to stock price at grant. Basically an option on a $20 stock is worth twice an option on a $10 stock, assuming the same volatility, interest rate and life. (In practice low-priced stocks tend to have higher volatilities, but that's a separate issue). Peter