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The Option to Buy a Company's Stock at Some Future

Question 62

Multiple Choice

The option to buy a company's stock at some future time at current prices is often given to CEOs


A) as an incentive to take actions that will raise the share price.
B) because CEOs are often friends of those who hire them.
C) as a means of discouraging the CEO from taking any risky actions.
D) because this has become the custom of the business culture.

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