Nestor Receives the Right to Acquire 1,000 Shares of Knolls

question 86

Multiple Choice

Nestor receives the right to acquire 1,000 shares of Knolls Corporation stock through the company's incentive stock option plan. The fair market value of the stock at the date of the grant is $20 and the exercise price of the option is $24 per share. For the option to qualify as an incentive stock option
I.Nestor must exercise the option within 10 years of the date of grant.
II.Nestor must hold the stock for at least 2 years after the date of exercise before selling it.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Right Coronary Artery

A major artery of the heart that supplies blood to the right side of the heart and other areas.

Visceral Pericardium

The inner layer of the pericardium that is in direct contact with the heart, providing a protective and lubricating container.

Epicardium

The outermost layer of the heart wall, consisting of an epithelial layer and connective tissue, which provides lubrication and protection for the heart.

Fibrous Pericardium

The tough, outer layer of the pericardium that encloses the heart and helps protect it.