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biomaven0

01/20/16 5:10 PM

#199202 RE: DewDiligence #199200

>>It’s legal to exercise options and hold the resulting shares while in possession of material non-public information.

Paradoxically, if you know a disaster is coming shortly but can't sell because of inside information, it is optimal to exercise and hold, with enough shares withheld to cover taxes. But I doubt if one executive in a thousand is sophisticated enough to figure that out.

Peter