Which of the Following Statements About Employee Stock Options (ESOPs)is

question 11

Multiple Choice

Which of the following statements about employee stock options (ESOPs) is true?

• A)When initially issued, the strike price on the option is typically established such that the option will be far-out-of-the-money.
• B)ESOPs are worth less to the employees who receive them than they would be to third parties.
• C)ESOPs should rarely be exercised early, but instead should be held to expiration.
• D)They do not have the dilutive effect on earnings and ownership that the exercise of a regular option has.

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