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.

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Definitions:

Theory-of-Mind

The ability to attribute mental states to oneself and others, understanding that others have thoughts, desires, and intentions that are different from one's own.

Autistic

Related to or affected by autism, a developmental disorder characterized by challenges with social interaction, communication, and repetitive behaviors or restricted interests.

Bilingual

Fluent in two languages.

Long-term Memory

The aspect of memory where information is stored for an extended period, sometimes indefinitely.