The option to buy a company's stock at some future time at current prices is often given to CEOs
A) as an incentive to take actions that will raise the share price.
B) because CEOs are often friends of those who hire them.
C) as a means of discouraging the CEO from taking any risky actions.
D) because this has become the custom of the business culture.

Question

Quizplus · Accepted Answer

The option to buy stock at a future time at current prices is known as stock options, which are often given to CEOs as an incentive to make decisions that will increase the company's share price. This aligns the interests of the CEO with those of the shareholders, as they both benefit when the company's value goes up.

The Option to Buy a Company's Stock at Some Future