Market prices for share options granted to employees are typically not available because:
A) options granted to employees are subject to terms and conditions that do not apply to traded options.
B) it is difficult to obtain the fair value of these options using option pricing models.
C) employee options have long lives and usually exercised early.
D) All of the given answers.
E) options granted to employees are subject to terms and conditions that do not apply to traded options and it is difficult to obtain the fair value of these options using option pricing models

Question

Quizplus · Accepted Answer

Options granted to employees often have unique terms and conditions that differ from traded options, making market prices unavailable.

Market Prices for Share Options Granted to Employees Are Typically