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JavaScript

I don't understand why this piece of code work

code.js
var $select = $("<select></select>"); 
$("#menu").append($select); 
$("#menu a").each(function(){
    var $anchor = $(this);
    var $option = $("<option></option>");

    $option.val($anchor.attr("href")); 
    $option.text($anchor.text()); 
    $select.append($option); 
});

var $button = $("<button>Go</button>"); 
$("#menu").append($button); 

$button.click(function(){ 
    window.location = $select.val(); 
});

it's all right but I don't got the last two rows if I take the anchor value by href and I put it in the option (not in the select) why the window.location work also if it take value of select (and not of option)?? can it recognise the value inside option that is inside select??