Stock options help to mitigate agency problems between shareholders and managers by: a. Aligning the interest of

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Stock options help to mitigate agency problems between shareholders and managers by:

a. Aligning the interest of managers with those of shareholders.

b. Offering managers a stable, constant reward for a job well done.

c. Allowing shareholders to fire underperforming managers.

d. Diluting the ownership structure of the company.

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