What is the likely impact of restriction on early exercise

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Reference no: EM131237244

Consider a 5-year call option on a non-dividend-paying stock granted to employees. The option can be exercised at any time after the end of the first year.

Unlike a regular exchange-traded call option, the employee stock option cannot be sold. What is the likely impact of this restriction on the early-exercise decision?

Reference no: EM131237244

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