Executive Stock Options Are One Way of Rewarding Executives

Multiple Choice

Executive stock options are one way of rewarding executives.Restricted stock units are another way.Cash payments are yet another way.Consider the following two statements:
(i) Restricted stock units become more attractive compared to stock options as stock price volatility
Increases.
(ii) Cash payments become more attractive compared to restricted stock units as stock price
Volatility increases.

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, if we replace "more" with "less".