Permit the Recipient to Exercise the Stock Option or to Take

question 80

Multiple Choice

permit the recipient to exercise the stock option or to take any appreciation in the stock price in cash, stock, or some combination of these.

• A)Nonqualified stock options
• B)Stock appreciation rights
• C)Performance achievement plans
• D)Phantom stock plans
• E)Restricted stock plans

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Definitions:

Cash Equivalent

Short-term, highly liquid investments easily convertible to known amounts of cash and so near their maturity that they present minimal risk of changes in value.

Liquid

Describes an asset's ability to be quickly converted into cash without significant loss in value.

Maturity Date

The maturity date is the specified date on a financial instrument at which the principal (or final payment) is due to be paid to the holder.