Dilutive options in M&A model

I am a little bit confused about this topic.

I know that, unlike general valuation, M&A analysis assumes all outstanding options are exercisable. However, does this rule pertain to the buyer, seller or both?

On an intuitive level, one can surmise that option holders for both buyer and seller could be impacted in a deal and therefore deserve a "way out". The Wall Street Prep course I am using, however, doesn't seem to affirm my view.

Thanks very much!