Which of the Following Is/are Not True Concerning an Employee

question 126

Multiple Choice

Which of the following is/are not 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)A stock option whose exercise price exceeds the current market price has economic value because of the possibility that the market price will exceed the exercise price on the exercise date .
• E)none of the above