Which of the Following Statements About Backdating Is Most Valid

question 23

Multiple Choice

Which of the following statements about backdating is most valid?

• A)A backdated option is one that is issued prior to today.
• B)Backdating usually involves the issuance of an option with a prior issue date and lower strike than today's price.
• C)Backdating usually involves the ex-post issuance of an out-of-the-money option.
• D)A backdated option is exactly the same as a fixed-strike lookback option.

---

Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure a company's bookkeeping system is mathematically correct.

Chart of Accounts

An organized list of all accounts in an entity’s financial system, used for classifying transactions.

Numbering System

A structured method for assigning unique identifiers to items to facilitate organization, tracking, and retrieval.

Identification

The process of recognizing or establishing the identity of a person or thing.