In 2018, a Company Employee Received an Option to Purchase

question 42

Multiple Choice

In 2018, a company employee received an option to purchase the company's stock at $45 per share. If the stock is trading at $40 a share in 2020, the employee will most likely

• A) exercise the option, receiving a gain of $5.
• B) exercise the option, receiving a gain of $40.
• C) not bother to exercise the options.
• D) buy the stock at $45 per share.
• E) sell the shares to a third party slightly above the market price.

---

Definitions:

Concepts

Concepts are abstract ideas or general notions that exist in the mind, serving as the building blocks for thoughts, theories, and beliefs.

Links

Hyperlinks or connections between web pages that allow users to navigate from one page or website to another.

Effectuating Approach

A method or strategy implemented to achieve a particular result or effect.

Whom You Know

The concept that personal and professional connections can influence opportunities and success in business.