Which of the Following Statements in Relation to Modifications to the Terms

question 15

Multiple Choice

Which of the following statements in relation to modifications to the terms and conditions on which equity instruments were granted as part of an employee share scheme is correct?

• A) A reduction in the exercise price of options will reduce the fair value of the share options.
• B) A reduction in a performance hurdle relating to profitability targets will reduce the fair value of the options.
• C) A shortening of the vesting period will increase the fair value of the share options.
• D) An increase in the number of equity instruments granted is not an example of a modification.

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Definitions:

Lower Dose

A reduced quantity or concentration of a substance, typically medication, administered or consumed, intending to minimize risk or side effects while maintaining effectiveness.

Diet Pills

Supplements intended to help with weight loss by suppressing appetite, increasing metabolism, or blocking fat absorption.

Amphetamines

A class of stimulant drugs that can increase energy and concentration but also carry the risk of addiction and adverse health effects.

Morphine

A highly addictive substance derived from opium that is particularly effective in relieving pain.