1. Stock Options for Undiversified Executives at 19;Brian J Hall;NBER Working Paper,2001
2. But certain option designs might cause executives to take on too much or too little risk. While it is possible to show, under certain assumptions about managerial risk aversion, managers' reservation utility, and project choices, that at-the-money options are optimal, see Nohel and Todd;Murphy;J Acct Econ,2001