If i paste

<select style='margin:0px;width:120px'>
<option value="Test1">Test1</option>
<option value="Test2">Test2</option>
</select>

into the HTML view and then switch back to design view. The editor changes the html to

<select style='margin:0px;width:120px'>
<option value="Test1" />Test1
<option value="Test2" />Test2
</select>