Which of the Following Is False Regarding Employee Stock Options

question 2

Multiple Choice

Which of the following is false regarding employee stock options?

• A) Employee stock options require no immediate, out-of-pocket costs to the company.
• B) They can usually be exercised immediately by the employee.
• C) They are a major recruiting tool to attract new employees.
• D) The strike price of employee stock options can be changed.
• E) They are used to align interests of shareholders and management.

Understand the concept and definition of simulation.

Comprehend how Monte Carlo simulation utilizes random numbers.

Recognize the flexibility in simulation with respect to probability distributions.

Identify the advantages and disadvantages of using simulation models.

---

Definitions:

Exxon Valdez

An oil tanker whose 1989 spill off the coast of Alaska caused one of the biggest environmental disasters in U.S. history.

Safeguards

Protective measures or mechanisms put in place to prevent harm, damage, or any other undesirable outcome.

Technological Growth

The process of innovation and the spread of new technological inventions, contributing to economic development and changes in societal practices.

Rational Understandings

The ability to comprehend, interpret, and reason about information or situations in a logical and coherent manner.