Repricing an employee stock option involves which one of the following?
A)stock split
B)stock dividend
C)change in option strike price
D)change in option expiration date
E)change in option premium

Question

Quizplus · Accepted Answer

Repricing an employee stock option involves changing the option strike price, typically to a lower price. This is done in order to provide additional incentive to the employee by making the option more valuable. A stock split or dividend would affect the underlying stock price but not necessarily the option itself. Changes to the expiration date or premium would also not necessarily involve repricing the option.

Repricing an Employee Stock Option Involves Which One of the Following