Maren Received 10 NQOs (Each Option Gives Her the Right

question 115

Multiple Choice

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. What is the amount of Maren's bargain element?

• A)$0
• B)$700
• C)$900
• D)$1,500
• E)None of the choices are correct.

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Definitions:

Wave Amplitude

The height between the trough and the crest of a wave, including ocean waves and seismic waves.

Continental Collisions

The process where two continental plates collide, often leading to mountain building.

Thrust Faults

A type of fault where the hanging wall moves upward relative to the footwall, typically associated with compressional tectonic forces.

Seismic Waves

Vibrations that travel through Earth's interior or along its surface, generated by earthquakes, volcanic eruptions, or manmade explosions.