This is the granted option that would be reported to the SEC.
The act of options backdating has become much more difficult as companies are now required to report the granting of options to the SEC within two business days.
Working like a continuous data recorder, Back Dating™ lets you instantly recover from any moment in history down to the second.
However, this concept is not perfect and there are ways that executives can take advantage of the way that options are granted in order to earn money.Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower.This is a way of repricing options to make them valuable or more valuable when the option "strike price" (the fixed price at which the owner of the option can purchase stock) is fixed to the stock price at the date the option was granted.The process of granting an option that is dated prior to the date that the company granted that option.In this way, the exercise price of the granted option can be set at a lower price than that of the company's stock at the granting date.
Options backdating occurs when companies grant options to their executives that correspond to a day where there was a significantly lower share price.