Executive Options Do Not Always Have the Intended Effects

Multiple Choice

Executive options do not always have the intended effects.Consider the following two statements: (i) The recent shift from executive share options to restricted stock units suggest that in practice, the
Effective minimum value of executive share options is not zero.
(ii) When options are a large portion of an executive's net worth, the total value of the option
Position to the executive is less than market value.

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 (i) is correct, but only if zero is replaced with "negative".