Corporations by Rewarding Executives with Large Option Positions

Multiple Choice

Corporations by rewarding executives with large option positions:

A) cause the executives to hold highly undiversified portfolios.
B) put the firm in a risky position to pay off the options.
C) cause the value of the equity to fall because the options are theft.
D) are really valueless because most options are never exercised.
E) None of the above.