The motive for CEOs to backdate options is that it allows them to exercise the options at a lower exercise price.

Name: The motive for CEOs to backdate options is that it allows them to exercise the options at a lower exercise price.
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Question

Quizplus · Accepted Answer

Backdating options allows CEOs to choose a date when the stock price was lower, which means they can exercise the options at a lower price and potentially make a larger profit. Therefore, the statement is true.

The Motive for CEOs to Backdate Options Is That It