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Consider a five-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
Consider a five-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 early exercise?
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