Stock options in compensation plans usually are issued with a strike price equal

Question

Stock options in compensation plans usually are issued with a strike price equal to the current stock price. As long as the stock price increases, the option will become valuable, even if the stock price doesn’t increase as much as investors expect.   True False Stock options in compensation plans usually are issued with a strike price equal to the current stock price. As long as the stock price increases, the option will become valuable, even if the stock price doesn’t increase as much as investors expect.  

Explanation / Answer

Optoin has value only when the stock price is more than the exercise price, which means option becomes valuable as long as stock price increases.

given statement is true

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