This question is actually based on the understanding of options:

No matter whether the final exercise method is stocks or cash, the party who exercises the option is earning the price difference - 102 Exercise the option, the actual price is 104, exercise the option in cash to get (104-102) * number of shares = ①; exercising the option in stocks is equivalent to paying less ①——

Whatever you earn is Price difference -

If you use the price difference paid to buy stocks, you can buy (104-102) * number of shares / stock price 104 = 19.2 - this is the net settlement of common shares - that is, after exercise The actual number of shares of common stock that can be purchased for the price difference earned.

∴Three settlement methods for options:

Cash spread

The number of common shares that can be bought by the price difference - net common shares

Buy common stocks at the agreed price of the option - you can pay less cash difference

The problem with the textbooks of the conference is that there are only rules for the treatment, but no reasons for the treatment. It seems troublesome and you need to think about it yourself.