Ron:
One would have to know all of the various contingencies surrounding the option itself to make a 100% certain response, but typically options given to an employee at a certain strike price only have value when/if the company’s stock is above that strike price. That being said, the option is worthless at this point. It gives him the right TODAY (assuming he is still vested and the option has not been modified for some reason) to purchase VZ stock at $41 a share. He can buy VZ on the open market today at about $31. It may have had some value IF it was exercisable at the time VZ was above $41, but that is no longer the case. He would have had to exercise it at that time to garner any value from it.
One can hope VZ has a miraculous run up above $41 before the 10 year option actually expires sometime this year.
Hope this helps.
Ken
From: OptionClub@yahoogro
Sent: Thursday, April 08, 2010 5:50 PM
To: OptionClub@yahoogro
Subject: [TheOptionClub.
Hello Group,
I have a question, A relative of mine recieved a long term 10 year call option from verizon in 2000 with a strike price of $41.00. I looked at the VZ chart and seen that strike was hit in 2008 now it's trading at $31.00 my relative still holds that option. My question is can that option be cashed out of now and at what price since it hit that strike two years ago? Thankyou Group.
Ron,
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