Which of the Following Statements About Employee Stock Options (ESOPs)is

Which of the following statements about employee stock options (ESOPs) is true?

A) When initially issued, the strike price on the option is typically established such that the option will be far-out-of-the-money.
B) ESOPs are worth less to the employees who receive them than they would be to third parties.
C) ESOPs should rarely be exercised early, but instead should be held to expiration.
D) They do not have the dilutive effect on earnings and ownership that the exercise of a regular option has.