Maren Received 10 NQOs (Each Option Gives Her the Right

question 86

Multiple Choice

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 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) $700.
• C) $900.
• D) $1,500.
• E) None of the choices are correct.

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Definitions:

Rehabilitation

The process of helping an individual achieve the highest level of function, independence, and quality of life possible after illness, injury, or imprisonment.

Incarceration

The state of being confined in a prison or similar facility as a form of punishment following conviction for a crime.

Conformity Pressure

The social influence exerted on individuals to make them comply with the norms or behaviors of a group.

Hung Verdict

A legal situation where a jury cannot reach a unanimous decision, leading to a mistrial and possible retrial.