Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (67892)	5/17/2005 2:30:28 PM
From: rkral	Read Replies (1) \| Respond to of 77400

GVTucker, re " would argue that there is more incentive for Cisco to OVERprice the options if they could, rather than underprice them. But since the people bidding for the options won't willingly pay too much for the options, odds are that they'll sell at the market-clearing price." If the option quantities are nearly the same, I agree. But what if the "identical" options sold to institutions were only 10% of the ESOs? The company would then be more likely to accept an underpricing IMO. Ron