I have chosen to research the Target Corporation (NYSE: TGT). Target uses call options as part of their employee compensation program. "Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific period.A call buyer profits when the underlying asset increases in price" (Kuepper, 2020, para.1). The following tables depict the total cash value of stock options exercised in 2018 was $96 million. The intrinsic value of the stock options was $50 million. Target still had 3,990 total options outstanding at the end of 2018, with only 2,039 of them exercisable.

A retiree that received stock as part of their pension package benefit could exercise their stock options as long as the intrinsic value was positive. Having the shares would allow them to receive any dividends distributed when the market price exceeds the strike price that for said options, They can sell their stock for a profit. Target has a periodic repurchase program authorized by its Board of Directors. The retiree has the opportunity to sell back their shares to the company and turn a profit on the stock options they received.

Required:

Critique the above view on mitigation strategies and offer a counterpoint or additional resources the students can use to expand their understanding.