Employee Stock Options

question 9

Multiple Choice

Employee stock options:

• A) usually have a positive intrinsic value when issued.
• B) must be backdated at least six months to comply with Sarbanes-Oxley.
• C) are generally "underwater" when issued.
• D) are frequently repriced if the options are in-the-money.
• E) are generally issued with a zero intrinsic value.

---

Definitions:

Long-term Memory

is a type of storage in the brain capable of holding an unlimited amount of information indefinitely, ranging from personal experiences to factual knowledge.

Emotional Events

Life occurrences that elicit strong emotional reactions and have significant psychological implications.

Hypothalamus

An area of the brain situated beneath the thalamus, which regulates the autonomic nervous system and pituitary gland functions, overseeing the regulation of body temperature, thirst, hunger, and various other systems that maintain body equilibrium.

Amygdala

A part of the brain's limbic system involved in emotion regulation, particularly fear and pleasure responses.