The board of directors of cyberscope, inc., is designing a stock option plan for its ceo that will motivate the ceo to increase the market value of the firm. consequently, the board is " setting the option strike price substantially higher than the current stock price".
A board of directors are generally refers to as the executive committee which are responsible for supervision of the activities of organization.
Whereas, the stock ownership is defined as the scheme under which the employees of the company own the shares in that firm. These are purchased by the employees at lower price of market price.
The board generally setting the option strike in price in order to increase the overall market value of firm.
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