Repricing an Employee Stock Option Involves Which One of the Following

question 41

Multiple Choice

Repricing an employee stock option involves which one of the following?

• A)stock split
• B)stock dividend
• C)change in option strike price
• D)change in option expiration date
• E)change in option premium

---

Definitions:

Marginal Revenue Function

The rate at which total revenue changes with respect to the output quantity change.

Marginal Costs

The added cost that comes from producing an additional unit of a product or service.

Kinked Demand Model

An economic model that suggests prices remain stable because firms in oligopoly markets may not adjust their prices in response to small shifts in demand or cost.

Demand Curve Shifts

Changes in the demand curve caused by factors other than the price of the good, leading to a new quantity demanded at every price.