Which of the Following Is True Regarding Stock Options

question 6

Multiple Choice

Which of the following is true regarding stock options?

• A)A loss is realized when stock options lapse.
• B)There is typically no tax effect on the grant date.
• C)Income recognized on the exercise date is greater for incentive stock options than nonqualified options.
• D)The bargain element on a nonqualified option is taxed to employees at capital gain rates.

---

Definitions:

Geometry

The branch of mathematics that deals with the properties and relationships of points, lines, surfaces, and solids.

Alkene

Organic compounds that differ from alkanes by having at least one double bond between carbon atoms, making them unsaturated.

Heat Of Hydrogenation

The heat of hydrogenation is the change in enthalpy that occurs when an unsaturated compound reacts with hydrogen to become saturated, used as a measure of the stability of the compound’s double bonds.

Alkene

A hydrocarbon compound characterized by the presence of at least one carbon-carbon double bond, playing a vital role in organic chemistry.