Executive stock option backdating

Referring to the paper “Option Backdating and Its Implications” (by Jesse M. Fried), and/or any other research of your own (please, document your sources), briefly discuss:

The types of executive stock option backdating.
The circumstances under which the backdating of corporate executive stock option backdating may or may not be legal (or illegal). Make sure to briefly describe in your answer what the following expressions means about executive stock options: (1) At-the-Money, (2) In-the-Money option, and (3) Out-of-the-Money option.

Sample Solution