Which of the Following Best Defines an Employee Stock Option

question 188

Multiple Choice

Which of the following best defines an employee stock option (ESO) ?

• A) A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.
• B) An option granted to an employee by a company giving the employee the right to buy shares of stock in the company at a fixed price for a fixed time.
• C) An option that can be exercised only on the expiration date.
• D) The act of buying or selling the underlying asset via the option contract.
• E) The last day on which an option can be exercised.

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Definitions:

Special Damages

Compensation for out-of-pocket expenses incurred as a result of an injury or other harm.

Slander

A form of defamation that involves making false and damaging spoken statements about someone.

Prove

The act of establishing the truth or validity of a statement or claim through evidence or argumentation.

Defamation

The act of damaging someone's reputation by making false and harmful statements.