Thursday, April 24, 2008

The Option Value - Obama did not understand this!

The Democratic National Committee made it clear to Michigan's Democratic state committee that if they held the election early that they would not allow the delegates to vote.

They did not ask the candidates to withdraw their names. Obama CHOSE to, but Hillary did not. She did not exercise that option because according to option theory, options are valuable until the last possible moment that they become worthless.

Now that it is a close race, she can rightfully claim that the popular vote should be counted because Obama CHOSE to pull out!

From the WSJ:

'The Clinton campaign is renewing its fight to claim disputed votes from Florida and Michigan primaries, but that may anger the very superdelegates the campaign needs.

The Democratic Party stripped both Michigan and Florida of their convention delegates because both held primaries earlier than party rules allow, as all the Democratic presidential candidates recognized at the time. None campaigned in the states, and most candidates -- including Sen. Obama -- weren't on the Michigan ballot. The Clinton campaign says both states' votes should be counted. If they are, Sen. Clinton would overtake Sen. Obama's lead in the overall popular vote, and cut deeply into his pledged-delegates lead.

Hillary Clinton took the Democratic primary while Barack Obama left the state before the polls closed. WSJ's Chris Cooper evaluates whether Clinton's finances and delegate count make her a formidable opponent.

Michigan Gov. Jennifer Granholm said on the pro-Clinton conference call that giving Sen. Clinton the lead in the popular vote from all contests, including Michigan and Florida, "should be a sign to these superdelegates that she in fact is the strongest candidate to win the general election in November."

But many party leaders are angry that the Clinton camp is forcing the issue in this way. They fear it could antagonize other states and Obama supporters, and potentially split the party.'

No comments: