Maren Received 10 NQOs (Each Option Gives Her the Right

question 117

Multiple Choice

Maren received 10 NQOs (each option gives her the right to purchase 15 shares of stock for $7 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. What is the amount of Maren's bargain element?

• A)$0
• B)$1,200
• C)$1,350
• D)$2,250
• E)None of the choices are correct.

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Definitions:

Socialist System of Economy

An economic system where the means of production are owned and controlled by the state or public, aiming for equal distribution of wealth and resources.