Re: stock options
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Posted by Mark on January 09, 2000 at 19:40:05:
In Reply to: stock options posted by Daniel Comeau on January 09, 2000 at 19:21:07:
: Hi Mark,
: I just noticed something which kinda surprised me, but maybe there's
: logic behind it. : I added stock options, which were basically entered with the price and
: the number of shares. So far so good. However, when I then looked at
: the value of the investment, it was valued at #shares*price, just like
: a regular stock. What I would have expected for options would be
: something like : Value = (current price - initial price)*shares : as long as the price has gone up, and value = 0 if the price has gone
: down. : Maybe you can comment on this. : Thanks,
: Daniel Hi Daniel,
You are correct. Options are currently treated the same as stocks for all
practical purposes. Some people buy and sell options, just as stocks, so this
method works fine for that scenario. For employer granted options, where you have a certain grant price that
you must pay to buy the shares you can track in another manner. Use a
combination of 2 investments. The first investment is for the stock of
your options. Just record it as if you owned the stock. The second investment
represents the cost of the options. Record this as a fixed negative valued
cash investment. The sum of the two together represents your actual
value, assuming the price is above the grant price. We do hope to add into a future version the ability
to enter a grant price, for the case of employer granted options. Thanks,
Mark
--
Mark Beiley
Fund Manager for Windows 3.1x/95/98/NT
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