Question: As we have seen, much of the volatility in a companys stock price is due to systematic or marketwide risks. Such risks are beyond the

As we have seen, much of the volatility in a company’s stock price is due to systematic or marketwide risks. Such risks are beyond the control of a company and its employees.

What are the implications for employee stock options? In light of your answer, can you recommend an improvement over traditional employee stock options?

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