Consider a 5-year call option on a non-dividend-paying, Ask an Expert

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Consider a 5-year call option on a non-dividend-paying stock granted to employees. The option can be exercised at any time after the end of the first year.

Unlike a regular exchange-traded call option, the employee stock option cannot be sold. What is the likely impact of this restriction on the early-exercise decision?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91993120

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