What happens to a company’s stock options when the company is acquired by either a private or public company?

Todd S asked: In other words, if I buy a call option that expires in January 2010, and the company is aquired before that time, what happens to my right to buy shares in the acquired company? Am I compensated for the call option at the time of the acquisition? If so, at [...]

What happens to a company’s stock options when the company is acquired by a public company?

Cup asked: i assume they are converted to the public company stock 1-for-1 or on another agreements stipulated in the purchase. but what happens to the vesting schedule? are they automatically vested once the purchase is complete and options are converted or do they keep the same vesting schedule.
ex. i have 1000 shares, 500 are [...]