Which of the Following Are True About Employee Stock Options

question 2

Multiple Choice

Which of the following are true about employee stock options? choose three)

• A) They are never exercised early if the company does not pay a dividend.
• B) They are commonly valued as though they are regular American options.
• C) They are commonly valued as though they are regular American options, but with a reduced life.
• D) They are commonly valued as though they are regular European options, but with a reduced life.
• E) They are never worth more than regular American options with the same strike price and time to maturity.
• F) There was a period of time during which their value had to be reported, but was not included on the income statement.

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