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You are the manager of an airline company. The company issues stock options to its employees that have a fixed exercise price and term to
You are the 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 well 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. Managers complain this is not fair. Discuss this viewpoint and suggest any solutions?
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