Re: Stock options

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In Reply to: Re: Stock options posted by George Timms on April 18, 1999 at 08:44:38:

: : Is there a way to enter stock options that the company awards us? They give us the base shares, but we only recieve the gain on those shares unless we purchase them.
: : Is there a work around to this?

: I think you're describing something my company
: calls "Stock Appreciation Rights" (SAR) which
: aren't the same as stock options. Options don't
: pay you anything until/unless you exercise them
: by buying the stock

For stock options granted by your employer, you
can track these using a combination of 2 investments.
One investment is created with a constant
negative value, equal to the amount it will
cost you to exercise these options. The second
investment tracks the value of the shares as
if you owned them now. Add both of these
investments to your portfolio. The sum of the
two investments will create the correct total
value in your portfolio.

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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