Advanced Micro Devices Inc (AMD)

[kpf]

Options exchange program

Although I seem to be the only one attributung any importance to it, I went through it and find the following implications:

1. Strike for new options is final quote of some date not exactly specified, likely somewhere in February or March 2004.
The term creates the Paradoxon that rising quotes from successful operational results within the next seven (or eight) months will counteract financial interests of participating employees. (Top-Management is not egligible to take part in it)

2. There is a forecast for the AMD-quote implied to be around February 2004 at 12 to 13 Dollars. (exchange of lowest-strike option Black-Scholes-flat)

I am well aware that it is a very complex matter to design a program like this in a way of balancing interests under consideration of tons of legal, fiscal and accounting stuff, especially right now when handling of ESOPs is in controversal discussion. And I recognize the very best intentions the authors had with it.
But the procedural solution of choice I see here is not one of impressive excellence; carefully said.

K.