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You are manager of an airline company. The company issues stock options to its employees that have a fixed exercise price and term to maturity.

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You are manager of an airline company. The company issues stock options to its employees that have a fixed exercise price and term to maturity. Your company is very efficient and wel managed compared to its competitors. However, due to a significant rise in the world price of oil, all airline stocks fall and your options expire "out of the money

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