Which of the Following Is True Regarding Stock Options

question 89

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) The bargain element on a nonqualified option is taxed to employees at capital gain rates.
• D) Income recognized on the exercise date is greater for incentive stock options than nonqualified options.

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Definitions:

Primary Storage

The main storage area in a computer system, typically RAM, where the operating system, application programs, and data in current use are kept so they can be quickly reached by the computer's processor.

Secondary Storage

A type of computer storage separate from the main memory, used for keeping data and programs permanently, often referred to as external or auxiliary storage.

Primary Storage

The main storage of a computer where data is stored temporarily for quick access by the processor.

Volatile

Characterized by or subject to rapid or unexpected change, often used to describe financial markets or memory storage that requires power to maintain stored information.