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13. (5 points) The CEO of the corporation at which you are an accountant wants to exercise their stock options on a day in
13. (5 points) The CEO of the corporation at which you are an accountant wants to exercise their stock options on a day in which the market price per common share is $27, but their exercise price is $35. Their reasoning is that they'd like to influx more cash into the business and are feeling very "generous." At the same time, they are interested in keeping earnings metrics, such as Earnings per Share, as high as possible. What would you tell the CEO about exercising their options now?
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