DeMarco is the newly appointed CEO of the Litwich Corporation.The company's board of directors has made stock options a significant part of DeMarco's compensation package.It is likely that one of the board's objectives is to stabilize the value of Litwich's stock by preventing it from rising or falling more than a small percentage.

Question

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Stock options are often used as a form of incentive for executives to work towards the success of the company, which in turn can lead to an increase in the stock value. Therefore, it is unlikely that the board's objective is to stabilize the stock value by preventing significant changes.

DeMarco Is the Newly Appointed CEO of the Litwich Corporation