In Evaluating Employee Stock Options,the Exercise Value Approach Provides

question 16

Multiple Choice

In evaluating employee stock options,the exercise value approach provides:

• A)A lower bound of valuation,and using it can undervalue the firm.
• B)An upper bound of valuation,and using it can undervalue the firm.
• C)A lower bound of valuation,and using it can overvalue the firm.
• D)An upper bound of valuation,and using it can overvalue the firm.

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