What does it mean that stock options are cancelled because they do not meet the requirements?

In the past, securities companies could create options, or the superior company gave the management certain stock options in the equity incentive plan. Options have an exercise price. In the equity incentive plan, if the exchange rate linked to equity incentives set by listed companies is high, stock options may expire and the previous stock options will be cancelled.

Options created by securities companies can also be cancelled. For example, if a securities company creates an option to buy A shares at 6 yuan price, it is called a warrant. Assuming that it is put into the market at the price of 65,438+0 yuan/share, the customer pays the warrant fee to buy the warrant from the market, but he can buy the stock at the price of 6 yuan/share when it expires or sell the warrant at the market price before it expires. When the warrant price drops sharply, the securities company that created the warrant can buy the warrant from the market at a low price and cancel it, earning the difference between issuing the warrant and redeeming the warrant.