Which of the following statements is (are)true about a share option:
A. The nature of the holder's right in relation to the option is affected by the likelihood that the option will be exercised.
B. The nature of the holder's obligations in relation to the option, are affected by the likelihood that the option will be exercised
C. The likelihood of the option being exercised does not impact on its classification as a financial liability.
D. The likelihood of the option being exercised does impact on its classification as a financial liability
E. They are always issued to management of entities as part of their pay structure.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is (are)true about a share option:
A. The nature of the holder's right in relation to the option is affected by the likelihood that the option will be exercised.
B. The nature of the holder's obligations in relation to the option, are affected by the likelihood that the option will be exercised
C. The likelihood of the option being exercised does not impact on its classification as a financial liability.
D. The likelihood of the option being exercised does impact on its classification as a financial liability
E. They are always issued to management of entities as part of their pay structure.

Which of the Following Statements Is (Are)true About a Share