Exercising out-of-the-money call options will realize losses rather than profits. It seems that there is no incentive
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Question:
Exercising out-of-the-money call options will realize losses rather than profits. It seems that there is no incentive to exercise the options. However, in the real world, corporate insiders, who have stock options, sometimes exercise their out-of-the-money options. Explain when and why they exercise the out-of-the-money options?
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