All of the Following Statements Regarding the Backdating of Stock

Multiple Choice

All of the following statements regarding the backdating of stock options is accurate EXCEPT:

A) This practice ensures that the recipient automatically realizes a profit.
B) It takes away from the purpose of stock options, which is to incent future performance.
C) Company performance does not have to improve in order for the stockholder to make a profit.
D) The date when the stock option was priced higher is to be considered the date of the award.
E) It does not motivate executives to perform well because they are guaranteed a profit.