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Assuming you are working for Apple Inc and part of your compensation takes the form of stock options.

Apple's current share price is $491. The exercise price of your stock option is $520. The value of the stock option is equal to the difference between Apple's stock price and the exercise price of $520, at the time that you exercise the option.

As an option holder yourself, would you prefer that Apple uses dividends or share repurchases to pay out cash to its shareholders?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924513

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