When Underwater Employee Stock Options Are Exchanged, the Option Holder

When underwater employee stock options are exchanged, the option holder generally receives:

A) a smaller number of new options with a lower exercise price.
B) a cash payment equal to the value of the options when they were originally issued.
C) twice the number of options with an exercise price equal to half of the original exercise price.
D) a larger number of new options with a higher exercise price.
E) the same number of options but with a higher exercise price.