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Current share price of XYZ corp. is $90 and the CEO owns 1000 call options at...

Current share price of XYZ corp. is $90 and the CEO owns 1000 call options at a strike price is $108. The CEO of XYZ corp. has two choices. Under strategy A share price will be $105 with prob. 1.0. Under strategy B stock price has equal chance of equaling $90 (1/2) and $110 (1/2) next year. Which strategy is better for shareholders? Which strategy will CEO choose?

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