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To: jpbrody who wrote (12969)	7/26/1998 6:57:00 AM
From: dougjn	Read Replies (1) \| Respond to of 152472

They become exerciseable for the proceeds of the acquisition, whether stock or cash. If in cash, you have no chance for appreciation beyond the amount received in the merger. So if at or under your strike price, yes, you do expire worthless. And there becomes no point in holding until expiration. If the proceeds of the acquisition are in stock, one stock is simply subsituted for the other, in the ratio established by the stock exchange terms. Doug

To: jpbrody who wrote (12969)	7/26/1998 9:58:00 AM
From: Jon Koplik	Respond to of 152472

Jim - regarding takeovers and LEAP prices -- what I personally find very interesting is the following. If you have the following prices XYZ Jan 1999 50 calls $2 XYZ Jan 2000 50 calls $8 XYZ Jan 2001 50 calls $12 and the stock gets taken over (above $50 a share) any time before Jan 1999, then the owners of the 2000 and 2001 LEAPS will have wasted a lot of money (and/or lack of ability to have leveraged themselves to a much larger position) (Similarly, if the buyout is between Jan 1999 and Jan 2000, the owners of the Jan 2001 LEAPS will have been (relatively) unpleasantly surprised). The solution, of course, is to pay those bid/ask spreads (and commissions) once per year. Jon.