Which of the Following Strategies Makes No Sense

question 12

Multiple Choice

Which of the following strategies makes no sense?

• A) An employee exercises stock options early and sells the stock. No dividends are expected
• B) An employee exercises stock options early and keeps the stock. No dividends are expected
• C) An employee exercises stock options early and sells the stock. Dividends are expected
• D) An employee exercises stock options early and keeps the stock. Dividends are expected.

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Definitions:

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes, typically used for investment or future spending.

Government Budget

A financial statement presenting the government's projected revenue and expenditure for a specific period.

National Saving

The total amount of savings generated within a country, which includes both private savings by households and businesses, and public savings from government budgets.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professionals.