Question: Please reply me fast answer. QUESTION 14 Employee stock options should be call options because a call option goes up invalue when the underlying stock

Please reply me fast answer.

QUESTION 14

Employee stock options should be

  1. call options because a call option goes up invalue when the underlying stock price goes up.
  2. call options because a call option goes up in value when the underlying stock price goes down.
  3. put options because a put option goes up invalue when the underlying stock price goes up.
  4. put options because a put option goes up invalue when the underlying stock value goes down.
  5. combinations of call andput options because the combination will make money no matter which way the underlying stock price goes.

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