Some of these backdating practices are associated with ISOs that are in-the-money option
grants worth a strike price below market value.
31) Conceptually, an in-the-money option
might still be considered performance-based because its value depends on maintaining the stock price above a certain number.
If a stock transaction would have created a constructive sale, the in-the-money option
will also create a constructive sale.
The extra $5 million received then goes to the investment banker to settle the in-the-money option
that the corporation had previously been short.
50 yesterday, it appears that most of the activity surrounding the in-the-money option
consisted of widespread profit-taking.
Open interest for this in-the-money option
comes in at 20,312 contracts, making it the site of peak front-month call open interest.
In addition, each outstanding in-the-money option
to purchase shares of Castelle was converted into the right to receive the excess, if any, of the per share purchase price ($4.
The in-the-money option
has seen heavy trading all day, but the bulk of today's volume crossed in two blocks of 10,000 contracts around 9:44 a.
At the time we pulled our numbers, this in-the-money option
had seen more than 22,000 contracts trade on an option that, heretofore, had open interest of fewer than 3,700 contracts.
50and includes the cash out of CBBC in-the-money options
The consideration of 50 pence for every Probability stock values all of the issued and to be issued stock capital of Probability (assuming that all rights regarding in-the-money options
under the Probability Stock Option Schemes are exercised) at nearly 18.
This includes the cancellation of in-the-money options