The Value of the Options Awarded Executives Is Much Less

Multiple Choice

The value of the options awarded executives is much less than face value to the executives because:

A) the value to the executive depends on the stock price being greater than the exercise price.
B) the options must be held beyond the freeze-out period.
C) a highly undiversified portfolio can have a large drop in value with high variance stocks.
D) All of the above.
E) None of the above.