Question

Stock options A. allow you to pay people only​ $1 in salary. B. force CEOs to try and maximize the share price in the short run. C. are a type of contingent reward. D. All of the above.

Answer 1

Answer:

The answer is C.

Explanation:

Stock options a type of contingent reward given to CEOs, top management or atimes workers of a company as an incentive to align their goals with the goals of the shareholders. Most times, the goals of management is different from goals of the shareholders. These people are called option holders.

Stock options are priced at a particular share price. If the share price for the company is within the range of the stock options price, the management will exercise this option.