Corporations by Rewarding Executives with Large Option Positions

question 17

Multiple Choice

Corporations by rewarding executives with large option positions:

• A)cause the executives to hold highly undiversified portfolios.
• B)put the firm in a risky position to pay off the options.
• C)cause the value of the equity to fall because the options are theft.
• D)are really valueless because most options are never exercised.
• E)None of the above.

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Definitions:

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Technology

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Processing Errors

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