Which of the Following Is Suggested by the Risky Worker

Which of the following is suggested by the risky worker hypothesis?

A) Risky workers have worse option values than safe workers.
B) Firms minimize downside risk by terminating employment contracts.
C) The worst outcome for a firm is earning small positive profits.
D) The firm breaks even if the safe worker is a diamond in the rough.
E) Workers have higher expected value in this model than in the efficiency wage model.