Bad Brad Received 20 NQOs (Each Option Gives Him the Right

question 53

Multiple Choice

Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $12 per share) from his employer. At the time he started working, the stock price was $11 per share. Now that the share price is $25 per share, he exercises all of the options. Two years later Bad Brad sells the stock for $27 per share. What is Bad Brad's basis in his stock for purposes of calculating the gain or loss at the time of the sale?

• A)$7,200
• B)$7,800
• C)$15,000
• D)$16,200

---

Definitions:

Linear Continuum

A concept representing a sequence or range of values or properties that can be measured along a straight line, implying a progression or series of stages that are smoothly connected without abrupt changes.

Persuasive Tones

The use of language and intonation in speech or writing intended to convince or influence others.

Firm Grips

A strong and secure hold or grasp on something, often used metaphorically to describe control or mastery.

Linear Continuum

A linear continuum describes a range or sequence that exists in a straight line, often used to represent a progression or a series of stages.