You have taken a management position in Ocean Cuisines plc that just went public last year. The companys restaurants specialize in seafood dishes. A concern you had was that the restaurant business is risky. During your interview process, one of the benefits you heard was employee stock option. Upon signing your employment contract, you obtained options with a strike price of 65 for 10,000 shares of company stock. As is fairly common, your stock options have a three-year vesting period and a 10-year expiration, meaning that you cannot exercise the options for a period of three years and you lose them if you leave before they vest. So, your employee stock options are European for the first three years and American afterward. You cannot sell the option nor can you enter into any sort of hedging. Ocean Cuisines is currently trading at 40 per share, a slight increase from the initial offering price last year.