CIMA Exam CIMAPRO19-P03-1 Topic 4 Question 11 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 11
Topic #: 4

Company directors who exercise executive share options generally resell the shares immediately, rather than holding them Which of the following best explains this behavior?

AThe directors receive a risk-free gain

BShareholders become nervous when the directors hold shares

CThe shares are out of the money at the exercise date

DIt is a conflict of interest for directors to be shareholders.

Show Suggested Answer

Suggested Answer: A

by Penney at May 04, 2022, 04:18 AM

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