Tony,the CEO,of a Publicly Traded Company That Sells Exercise Equipment

Tony,the CEO,of a publicly traded company that sells exercise equipment has done a good job; and the price per share of the company's stock had increased at a rapid rate during the past year.Tony encourages the board of directors of the company to grant stock options to him.He requests,however,that the grant date for the options be set during the previous year so that he can purchase the stock at a cheaper rate.Which of the following is true regarding his request?

A) This practice is a great option for Tony if the board members agree; and there is no problem with SEC regulation or with civil or criminal liability.
B) This practice,called backdating,is not a good idea because while it the practice is not illegal,investors generally frown on this practice.
C) This practice,called backsetting,is always illegal.
D) This practice,called backdating,is not always illegal; but it is illegal if done without appropriate disclosure.