Take private transaction FDSO question

Hello folks!

If there are exercisable options at the take-private transaction, would it be possilbe to pay "cash" instead of allowing dillutions to the sponsor?

Let's say there are 10mil shares @$5 strike price / purchase price per share is $10

Option A : Let options holders exercise the option and increase the shares outstanding by 10mil

Option B: Just pay them cash 10mil X ($10-$5), so that shares outstanding acquired by sponsor is the same.

Do you think both options are possible? Have you seen two cases? or Option A is most case?

Thanks for your reading!