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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: Robert O who wrote (3382)	10/7/1998 8:51:00 PM
From: Harry Sharp	Read Replies (2) \| Respond to of 11568

If GE offered $25 CASH for AMAT, your $30 LEAPS are worthless. However if GE offered, say, one share of GE for three AMAT shares then your LEAPS are tied to GE's stock price. With GE at $100 your LEAPS would have an intrinsic value of $3 over call price. Time premium would be on top of that and would reflect the anticipated future value of one-third share of GE. I didn't have the MCIC LEAPS but I did have Bay Networks LEAPS before Nortel bought them for .6 share of Nortel for each Bay share. My Bay Networks LEAPS are now tied to the value of 60 shares of Nortel. At expiration I can sell the LEAPS or exercise the option to take 60 shares of Nortel for each LEAP I hold. The MCIC LEAPS will work the same, they are NOT worthless and will go up or down depending on WCOM's stock price performance.