D. Ronald would be committing stock fraud if he exercises the options.
Step-by-step explanation:
The first three options are valid reasons to turn down the offer of stocks in place of salary.
A. Stocks with high returns have high volatility, and Ronald's company may not grow further.
B. Ronald may be taxed more for capital gains than he would be for employment income.
C. Stock options are illiquid, and Ronald may not be able to use them to pay for unexpected bills.
Option D is NOT a valid reason to turn down the stock offer. So, the answer is:
D. Ronald would be committing stock fraud if he exercises the options.