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Stock Options: Risks and Successes

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Think of a company, e.g., your own company or another company such as Wal-Mart, Apple, or American Airlines, and give a specific example of a real option that the company adopted in the past or might use in the future. If in the past, was it successful? If in the future, what are the risks involved?

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Solution Summary

Explanation of stock option used by American Airlines, together with risks.

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American Airlines adopted a stock option plan in 1961 in which key employees could buy stock in the airlines at favorable prices as ...

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