| Stock options in compensation plans usually are issued with a strike price equal to the current stock price. As long as the stock price increases, the option will become valuable, even if the stock price doesn’t increase as much as investors expect. | 
  
         | Stock options in compensation plans usually are issued with a  strike price equal to the current stock price. As long as the stock  price increases, the option will become valuable, even if the stock  price doesn’t increase as much as investors  expect. | 
    
Optoin has value only when the stock price is more than the exercise price, which means option becomes valuable as long as stock price increases.
 given statement is true