Executive compensation often comprises stock options.These options have vesting periods,and may not be exercised for a while.Which of the following actions might an executive take to help her mitigate the risk of her stock option grants?
A) Enter into an equity swap where she receives the company's share price returns in exchange for paying Libor.
B) Short futures on a broad market index.
C) Short her own company's stock.
D) Buy put options on her own stock.
Correct Answer:
Verified
Q13: In a fixed notional equity-for-floating interest-rate swap,the
Q14: Consider an equity-for-Libor swap.The swap favors the
Q15: An equity swap is an agreement to
A)Exchange
Q16: Which of the following is not true
Q17: You enter into a two-year variable notional
Q19: Which of the following factors does not
Q20: Consider a fixed notional equity-for-floating rate
Q21: Consider a 5-year $100 fixed notional
Q22: Consider a $100 notional equity-for-equity swap
Q23: Consider a $100 fixed notional,equity for
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