A Company Issued Share Option Is an Instrument That Gives

question 19

Multiple Choice

A company issued share option is an instrument that gives the holder the right, but not the obligation, to:

• A) receive a certain dividend declared by the company by a specified date.
• B) receive a bonus issue of shares in a proportion as notified by the company.
• C) buy a certain number of shares in the company by a specified date at a stated price.
• D) sell a certain number of shares in the company by a specified date at a stated price.

---

Definitions:

Setup Cost

The initial expense required to create a new product or establish a new process, including costs for equipment, facilities, and labor.

Multiply

The mathematical operation of increasing a number by another specified number of times, essentially repeated addition.

Multiply

To perform a mathematical operation where a number is added to itself a certain number of times, represented by the symbol \(*\).

Simplify

The process of altering an expression to make it easier to read or work with, typically by combining like terms and using algebraic properties.