Suzanne Received 20 ISOs (Each Option Gives Her the Right

question 58

Essay

Suzanne received 20 ISOs (each option gives her the right to purchase 20 shares of stock for $12 per share) at the time she started working when the stock price was $14 per share. Three years later, when the share price was $23 per share, she exercised all of her options. How much cash will Suzanne need on the exercise date of the stock options?

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Definitions:

Potential Mate

Describes an individual considered suitable for a romantic or sexual relationship based on certain criteria or preferences.

Physiological State

The condition of normal function of a living organism's body and its systems.

Motivational Arousal

The process of being mentally stimulated to do or feel something, especially to do something creative or achieve goals.

A Need

A requirement essential for an organism's survival, such as food, water, shelter, or warmth.