题目
Firms commonly incentivize their management to increase the firm's value by granting managers securities tied to the firm's stock. Some securities, however, can reduce managerial incentives to manage risk within the firm. Which is likely the best example of this type of security?
选项
A.Deep in-the-money call option on the firm's stock.
B.At-the-money call option on the firm's stock.
C.Deep out-of-the-money call option on the firm's stock.
D.Long position in the firm's stock.
答案
C
解析
Deep out-of-the-money calls have no value unless the firm value increases substantially, so providing deep out-of-the-money calls as an incentive could cause managers to take substantially higher risks and perform less hedging.除非公司价值显着增加，否则深度虚值看涨期权没有价值。因此提供大量的现金外交易作为激励，可能会导致管理人员承担更高的风险和采取更少的对冲。