Suzanne Received 50 ISOs (Each Option Gives Her the Right

question 72

Essay

Suzanne received 50 ISOs (each option gives her the right to purchase 50 shares of stock for $11 per share)at the time she started working, when the stock price was $16.75 per share. Three years later, when the share price was $28.00 per share, she exercised all of her options. How much cash will Suzanne need on the exercise date of the stock options?

---

Definitions:

Psychotropic Medications

Drugs that affect the mind, emotions, and behaviors by altering the chemistry of the brain.

Insight Therapy

A type of psychotherapy aimed at increasing a patient's awareness of underlying motives and defenses.

Lithium

A chemical element used as a medication to treat and prevent episodes of mania in people with bipolar disorder.

Naturally Occurring

Refers to processes, conditions, or events that exist or happen without human intervention.