The Value of the Options Awarded Executives Is Much Less

question 8

Multiple Choice

The value of the options awarded executives is much less than face value to the executives because:

• A)the value to the executive depends on the equity price being greater than the exercise price.
• B)the options must be held beyond the freeze-out period.
• C)a highly undiversified portfolio can have a large drop in value with high variance equities.
• D)All of the above.
• E)None of the above.

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Definitions:

Elitist

Pertaining to a belief or attitude that certain individuals, groups, or classes are superior and deserve to lead or have a greater share of resources and power.

Power Resource

Assets or capabilities that enable individuals, groups, or nations to exert influence and control over others, achieving desired outcomes.

State-Centred Theories

Theories that emphasize the role of the state in economic and social development, asserting its central role in guiding and controlling societal progress.

Societal Warfare

Conflict that arises within a society, often involving organized groups engaging in aggressive behavior or struggle for control.