The Value of the Options Awarded to the Executives Is

question 34

Multiple Choice

The value of the options awarded to the executives is much less than the face value to the executives because:

• A)the value to the executive depends on the equity price being greater than the exercise
• Price.
• B)the options must be held beyond the freeze-out period.
• C)a highly undiversified portfolio can have a large drop in value with high variance equities.
• D)All of the above.
• E)The value of the option can never be less than the face value.

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