How Is the Bargain Element for a Stock Option Calculated

question 18

Multiple Choice

How is the bargain element for a stock option calculated?

• A) The difference between the market price on the exercise date and the market price on the date of grant.
• B) The difference between the strike price and the market price on the date of grant.
• C) The difference between the market price on the exercise date and the strike price.
• D) The difference between the market price on the sale date and the strike price.

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Definitions:

Diathesis-stress

A psychological theory that explains disorder as the result of an interaction between a pre-dispositional vulnerability and stress caused by life experiences.

Expressed Emotion

A measure of the family environment that is based on how much criticism, hostility, and emotional overinvolvement are used when talking about the patient.

Serotonin

A neurotransmitter that plays a key role in mood regulation, digestion, sleep, and other bodily functions.

Conflict

A situation or condition in which a person encounters opposition, disagreement, or incompatibility, leading to a state of stress or tension.