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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV -- Ignore unavailable to you. Want to Upgrade?

To: art slott who wrote (4011)	5/20/1999 11:35:00 PM
From: StaggerLee	Read Replies (1) \| Respond to of 13157

Knock it off, Art. 1.5 million shares are worth a hell of a lot more than 1.5 million at-the-money options, no matter how you slice it. I use the word "may" because there is a lot of subjectivity to the valuation of options. The difference could be more than $15 million; it could be less. For your information, I used the following factors to value the options: Stock/exercise price: $15 Duration: 3 years Volatility: 50% (per note 7 in the financial statements) interest rate: 5% No dividends. That values them at about $6 each, or $9 million for 1.5 million options. The value of 1.5 million shares is $24 milllion. The difference is $15 million. Fair enough, Einstein?