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I think option two is the most likely, and should already be practiced at any company that is large enough.
However, $50K does sound like a tempting offer ...
Say... has this happened to you?
Sounds just a touch to probable to be fiction. Yikes.
I am very intrigued by this position that you stipulate. One reason being I am an IT guy and the other, I consider myself immune to either form of coercion.
I sum it up to the reality that if this scenario presents itself to me I will be in a very tricky situation which will ultimately result in my death. Considering the loyalty that I present to any establishment that I associate myself with, I would not be inclined to act against it. Secondly, I can not be threatened or manipulated by means of acts of violence against my loved ones or asset. (Especially since I have no assets.)
I am a firm believer in the "kill the hostages" policy that I coined upon learning about worldly events such as the weapons transport that was seized by terrorists a few days ago of the coast of Africa. If I were in charge, several cruise missiles would have found their way to that ship immediately after verifying that a terrorist seizure had in fact taken place.
If I ever got the phone call that went like this, "Hi Mark. We have your wife here with a gun to her head and you have one day to upload the virus to your company's network...." My response would succinctly and cleverly entail, " You can have it your way, Dr. Venkman. Shoot the bitch, I will not be pawed at." and hang up the phone.