Which of the following statements is true about phantom stock option plans?

Multiple Choice

They allow employees to purchase shares on the open market at the same price as they could purchase the shares from treasury.

The employee is treated as if they owned the shares of the employer. The bonus amount is based on the increase in the share value during the year.

Shares of the employer are issued to the employee and automatically exchanged for cash compensation.

Shares of the employer are issued to the employee instead of cash.