When Stock Options Are Given to Managers as Incentives, Typically

question 43

Multiple Choice

When stock options are given to managers as incentives, typically the exercise price of these options is set equal to the firm's:

• A) stock price on the day the options are granted.
• B) expected stock price in one year from the day the options are granted.
• C) expected stock price on the expiration date of the options.
• D) none of the above.

---

Definitions:

Interpersonal Therapy

A form of psychotherapy that focuses on improving interpersonal relationships and communication patterns to help resolve mood disorders and emotional stress.

Self-Actualization

According to Maslow, the point that is seldom reached at which people have sufficiently satisfied the lower needs and achieved their full human potential.

Latent Content

In psychoanalysis, the hidden psychological meaning of a dream, as opposed to the manifest content, which is the dream's storyline.

Manifest Content

In psychoanalytic theory, it refers to the surface level and obvious parts of a dream that the dreamer remembers upon waking.