Which One of the Following Is an Argument Against Repricing

question 52

Multiple Choice

Which one of the following is an argument against repricing employee stock options?

• A)ESO's are originally issued with positive intrinsic value so there is no reason to reprice.
• B)Employees have more incentive when options are "under water".
• C)Repricing is a reward for failure.
• D)It is unnecessary to reprice as ESOs expire quickly.
• E)Repricing affects the market price of the firm's stock for all shareholders.

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