Executive Options Are Different from Standard Options in a Number

Multiple Choice

Executive options are different from standard options in a number of ways.Consider the following two statements:
(i) A freeze-out period lowers the value of a standard option compared to an executive option.
(ii) The Black-Scholes formula cannot be used to value executive options, if the volatility of equity
Changes randomly over time.

A) (i) is correct, (ii) is incorrect.
B) (i) is incorrect, (ii) is correct.
C) Both (i) and (ii) are correct.
D) Both (i) and (ii) are incorrect.
E) only (ii) is correct, but only if the option comes with a freeze out.