When Firms Award Stock Options to Managers as Incentives, They

Multiple Choice

When firms award stock options to managers as incentives, they typically set the exercise price of these options equal to the firm's

A) stock price on the day the options are granted.
B) expected stock price one year from the day the options are granted.
C) expected stock price on the expiration date of the options.
D) stock price on the day the manager was hired.