Which of the Following Statements About Backdating Is Most Valid

question 33

Multiple Choice

Which of the following statements about backdating is most valid?

• A) A backdated option is one that is issued prior to today.
• B) Backdating usually involves the issuance of an option with a prior issue date and lower strike than today's price.
• C) Backdating usually involves the ex-post issuance of an out-of-the-money option.
• D) A backdated option is exactly the same as a fixed-strike lookback option.

---

Definitions:

Dependent Variable

The factor in a model or experiment predicted to vary as a result of modifications in the independent variables.

Seasonal Index

A measure that quantifies the predictable fluctuation in activity or values according to the season or time of the year.

Forecasted Sales

Predicted sales figures based on analysis of market trends, historical sales data, and other relevant factors, used by businesses for planning.

Trend Equation

A mathematical formula that models the underlying trend in a dataset, often used to make predictions about future values based on current and past data.