With Forward Start Options the Following Applies

question 28

Multiple Choice

With forward start options the following applies:

• A) they are often used for employee incentive schemes
• B) Black-Scholes model can be used to value them with some adjustment in relation to dividends
• C) they start at some time in the future, but are paid for now
• D) all of these choices

---

Definitions:

Visual Imagery

The process of forming mental pictures or visual representations in the mind, often used in memory and creative processes.

Algorithm

A set of rules or procedures for solving a problem in a finite number of steps, often used in computer programming and mathematics.

Heuristic

An educated guess based on prior experiences that helps narrow down the possible solutions for a problem. Also known as a “rule of thumb.”

Means-End Strategy

A problem-solving technique that involves identifying the end goal and then finding the means or steps to reach that goal.