Use the table for the question(s)below.
The following are the week-ending stock prices that occurred during the quarter:

-Billy,the CEO of Movin On Up Company,was granted stock options with an exercise price of $55.00 per share.Refer to the week-ending stock prices that occurred during the quarter.If Movin On Up engaged in the practice of backdating,which of the following is the most likely exercise price for Billy's options?

Question

Use the table for the question(s)below.
The following are the week-ending stock prices that occurred during the quarter:
 
-Billy,the CEO of Movin On Up Company,was granted stock options with an exercise price of $55.00 per share.Refer to the week-ending stock prices that occurred during the quarter.If Movin On Up engaged in the practice of backdating,which of the following is the most likely exercise price for Billy's options?

Quizplus · Accepted Answer

Backdating involves setting the exercise price of a stock option to a date in the past when the stock price was lower, thereby providing the recipient with a larger potential gain. The most likely exercise price for Billy's options would be the lowest price during the quarter, which is $56.82 at the end of week 3. Therefore, the correct answer is D.

Use the Table for the Question(s)below