Stock options in compensation plans usually are issued with

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.  
True
False
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.  

Solution

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

 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 w

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