When are stock options negative for the employee?
A) The market price is below the strike price
B) The market price is above the strike price
C) The options are dilution protected
D) The preferred stock is converted to common stock

Question

Quizplus · Accepted Answer

Stock options are negative for the employee when the market price is below the strike price because the options are "underwater" and cannot be exercised for a profit.

When Are Stock Options Negative for the Employee