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:

Stem

Usually the upright, vertical portion of a plant that transports substances to and from the leaves.

Flower

The reproductive structure of flowering plants, typically consisting of petals, sepals, stamens, and carpels.

Fence Post

A sturdy vertical structure that supports and maintains the alignment of a fence; often made of wood, metal, or concrete.

Barbed Wire

A type of fencing wire constructed with sharp edges or points arranged at intervals along the strands.