The Overallotment or Green-Shoe Option Allows

The overallotment or green-shoe option allows:

A) the issuing firm to take back any unsold shares from the underwriter so that an underwriting fee need not be paid for these shares.
B) the underwriting firm to charge a higher price for the shares in cases of very high demand.
C) the underwriting firm to buy more shares from the issuing firm if investor demand is strong.
D) the founder of the firm to sell his or her shares at a higher issue price in the case of strong investor demand.