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Calculate the contingent liability (option overhang) given the number of options are 50. The market price is $75; exercise price is $60 and the firms

Calculate the contingent liability (option overhang) given the number of options are 50. The market price is $75; exercise price is $60 and the firms tax rate is 30 %.

  1. $875
  2. $525
  3. $375
  4. $175

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