Question

Which one of the following is an argument against repricing employee stock options?
A. ESO's are originally issued with positive intrinsic value so there's no reason to reprice.
B. Employees have more incentive when options are "under-water".
C. Repricing is a reward for failure.
D. It is unnecessary to reprice as ESOs expire quickly.
E. Repricing affects the market price of the firm's stock for all shareholders.

Answer

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