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Explain how employees stock option can result in disastrous tax bill when the underlying firm's stock fall. Suppose you own 100 shares of Microsoft common

  1. Explain how employees stock option can result in disastrous tax bill when the underlying firm's stock fall.
  2. Suppose you own 100 shares of Microsoft common stock and wrote a need the month call option against it. Explain how you could estimate your value at risk

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