Why Would an Option Holder Almost Never Exercise an Option

question 28

Essay

Why would an option holder almost never exercise an option early?

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Definitions:

Procedural Fairness

The requirement that legal and administrative processes are conducted in a manner that is fair and impartial to all parties involved.

Administrative Tribunal

A specialized government body empowered to adjudicate disputes, make administrative decisions, and review administrative actions.

Discretionary Power

Authority granted to an individual or body to make decisions within certain guidelines without the need for explicit rules.

Administrative Tribunal

A specialized government body designed to resolve disputes in specific areas, such as employment, immigration, or social services, through a judicial-like process.