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Share options in US company?

Hi all,

In my vodka and class B substance induced state, I'm struggling to get my head around this :-)

My sister works for Asda and is in a position to subscribe to a share option plan whereby she gets to buy shares at about £27 in three years time.

Now, the shares are traded on the US stockmarket as Walmart soooooo.........

(i) the shares could rise but any gain in value could be negated by an unfavourable exchange rate? (ii) the shares could rise and any gain could be double-whammied by a favourable exchange rate? (iii) the shares could fall but any loss in value could be negated by a favourable exchange rate? (iv) the shares could fall and any loss could be double-whammied by an unfavourable exchange rate?

Are those four assumptions correct-ish?

And what would be desirable, exchange rate-wise? If she's buying shares in $US, she wants a weak dollar and a strong pound, or is it the other way around?

TIA.

Reply to
Wee Jinty Hopper
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The fluctuations will cancel each other out over time - the only questions to consider are:

1) Is Wal-Mart a good bet. 2) Is the offer at a good price.

This is where the Tesco model is so much stronger. They simply *give* their employees shares, even the humblest. Costs them nothing to write out the paper and there is nothing for anyone to be resentful about if the price plunges.

And because every Tesco is staffed entirely by Tesco shareholders they have a lot of incentive to make sure the price never does plunge, and so everyone wins.

Reply to
Troy Steadman

Asda do that as well!

Reply to
Wee Jinty Hopper

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