In Relation to Modifications to the Terms and Conditions on Which

question 10

Multiple Choice

In relation to modifications to the terms and conditions on which equity instruments were granted as part of an employee share scheme, which of the following statements is correct?

• A) A reduction in the exercise price of options will reduce the fair value of the share options.
• B) A reduction in a performance hurdle relating to profitability targets will reduce the fair value of the options.
• C) An increase in the number of equity instruments granted is not an example of a modification.
• D) A shortening of the vesting period will increase the fair value of the share options.

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Definitions:

PTH

Parathyroid hormone, a regulator of calcium levels in the blood, produced by the parathyroid glands.

Insulin

A pancreatic hormone responsible for managing glucose levels in the blood by aiding its absorption into body tissues.

ADH

Antidiuretic Hormone, a hormone secreted by the pituitary gland that regulates the balance of water in the body by reducing the amount of water excreted in the urine.

Addison Disease

A disorder characterized by insufficient production of cortisol and sometimes aldosterone by the adrenal glands, leading to fatigue, muscle weakness, and other symptoms.