Which of the Following Is/are True Concerning an Employee Stock

question 50

Multiple Choice

Which of the following is/are true concerning an employee stock options' benefit element?

• A)One cannot measure the amount of the benefit element before the exercise date.
• B)Stock options with exercise prices less than the current market price of the stock have a higher value, other things equal, than stock options with exercise prices exceeding the current market price of the stock.
• C)Stock options that are "in the money" have a higher value, other things equal, than stock options that are "out of the money".
• D)choices a and b, only.
• E)choices a, b, and c.

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Definitions:

Item Analysis

A series of statistical tests and procedures that can be used to assess for homogeneity in a test.

Construct Validity

The degree to which a test accurately measures the theoretical construct or concept it is intended to measure.

Content Validity

The ability of an instrument to fully assess or measure a construct of interest by sufficiently sampling from the entire universe of items for which the instrument was designed to sample.

Well-Established Construct

A concept or theory that has been extensively researched and validated, demonstrating consistent and reliable findings across studies.