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To: ccryder who wrote (3277)	5/21/1998 12:47:00 PM
From: Valueman	Read Replies (3) \| Respond to of 10852

Teledesic, Motorola in satellite system pact NEW YORK, May 21 (Reuters) - Privately-held Teledesic LLC and Motorola Inc. (MOT - news) said on Thursday they're teaming up to develop the world's first satellite communications network to provide affordable access to telecom services. They will be joined by Boeing Co. (BA - news) and Matra Marconi Space, an Anglo-French satellite manufacturer. With the deal, Motorola will get a 26 percent stake in Teledesic for a total investment of $750 million. The companies said their network will link enterprise computing networks and provide broadband Internet access, videoconferencing and other digital data needs. Seattle-based Teledesic was initially backed by Microsoft Corp. (MSFT - news) Chairman Bill Gates and Craig McCaw, who sold his McCaw Cellular Communications Inc. to AT&T (T - news) in 1994. McCaw is now Teledesic's chairman and co-chief executive officer. Teledesic will provide two-way, broadband network connections through service partners worldwide. Service is expected to begin in 2003. Motorola, one of the world's largest providers of wireless communications, based in Schaumburg, Ill., will be the prime contractor for the technology team, the companies said. Boeing, the world's largest aerospace company, invested $100 million in Teledesic in April 1997. The companies said they will build the world's first advanced telecommunications network to provide high-speed data connections to businesses, institutions and individuals anywhere in the world. The boards of Motorola and Teledesic have approved the plan, but it is subject to the parties entering into definitive agreements and obtaining necessary governmental approvals. Motorola's stock was up $2.31 to $57.00 in trade late Thursday morning on the New York Stock Exchange. Boeing's stock slipped 6 cent to $47.94 in late morning trade on the NYSE.

To: ccryder who wrote (3277)	5/21/1998 2:45:00 PM
From: Dragonfly	Respond to of 10852

I found your table a fairly confusing. I think you're making some assumptions that (at least) I am not getting. Could you walk us thru an one of the examples, say the $50 at execution. Dragonfly

To: ccryder who wrote (3277)	5/21/1998 6:32:00 PM
From: ccryder	Respond to of 10852

More on LEAPS. Refer to message 3277. Suppose you had four piles of money $100 in each. With one you bought the stock at $26.625, the next the 25s at 10.875, the next the 30s at $9.00, and the last pile the 35s at $7.50. These were the prices around 11 am EST May 21. In Jan 1991, assume the stock price is $50. The pile you bought stock with has appreciated to a value of 10050/26.625=$187.79. Your profit is $87.79 or 87.79 percent. The 25s have appreciated to a value of 100(50-25)/10.875=$229.88. Your profit is $129.88. And so on. From the table, if the stock price around $55 at expiry, it makes little difference which option you bought. At higher expiry prices, it is better to buy the further out of the money options at the risk of loosing money if the price is much less. The surprising thing is how "flat" the table is across the options. Not at all like the variability we saw at the first of the year.