Which of the following is/are true concerning an employee stock options' benefit element?

Question

Quizplus · Accepted Answer

A is true because the benefit element of employee stock options cannot be measured before the exercise date as it depends on the future market price of the stock. 
B is true because options with exercise prices less than the current market price of the stock are considered to be "in the money" and have a higher value than options with exercise prices exceeding the current market price of the stock. 
C is true for the same reason as B, as options that are "in the money" have intrinsic value, whereas options that are "out of the money" have no intrinsic value.

Which of the Following Is/are True Concerning an Employee Stock