In many cases, section 409A may subject the option holder to extra taxes.

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With a Chicago put you might get stuck with the stock in question if it dips and the option holder decides to exercise.

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It can happen if, say, the stock price and the exercise price are so close that the option holder sees no value in paying the commissions to exercise.

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First, it's sneaky: It's unclear what those options will be worth when the option holder gains the right to buy (or sell) the shares, so it's not clear to investors how much they are paying executives.

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The lack of a public market for the shares at the time of exercise may prevent a contemporaneous sale to produce cash to cover tax liabilities or to immediately recoup the exercise price paid by the option holder.

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The monetary authority, says Mr Miller, should sell convertible bonds which, if denominated in Hong Kong dollars, carry an option for the holder to convert into American dollars at the set rate.

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Though options generally have a lengthy exercise period to allow the holders to see if the shares are increasing in value, upon termination of the employment relationship or as the option nears expiration, the holder may have to make a quick investment decision.

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The House resolution gave lawmakers the option of filing a lawsuit if the Justice Department declined to file criminal charges against Holder.

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