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The Intrinsic Value Method of Measuring Options Based Compensation Is

question 51

True/False

The intrinsic value method of measuring options based compensation is no longer supported by FASB and the IASB.


Definitions:

Specified Rate

A predetermined interest rate detailed in a financial agreement or instrument.

Liquidity Risk Premium

An additional return that investors demand for holding securities with low liquidity, compensating for the cost associated with the inability to quickly sell the asset.

Corporate Bond

A corporate bond is a debt security issued by a corporation to raise funding, which promises to pay back the principal along with interest at a specified maturity date.

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