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What is the effect of the exercise of stock options? They generate cash to the issuing firm and, therefore, increase profit per share. They are

What is the effect of the exercise of stock options?

They generate cash to the issuing firm and, therefore, increase profit per share. They are an expense at the time of exercise. This lowers net income. They increase debt and lower borrowing capacity but have no effect on profit. They increase the numbers of shares outstanding

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