If a Stock Option Is Never Exercised, the Return on Investment

question 88

Multiple Choice

If a stock option is never exercised, the return on investment generated is

• A) 100%.
• B) 0%.
• C) -100%.
• D) Not enough information given to determine.

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Definitions:

CIF

An international commercial term (Incoterm) meaning "Cost, Insurance, and Freight," indicating the seller must cover these costs to the point of destination specified.

Marine Insurance

Insurance coverage that protects against the loss or damage of ships, cargo, terminals, and any transport by which property is transferred, acquired, or held between the points of origin and final destination.

Port of Shipment

The port of shipment is the specific location where goods are loaded onto a shipping vessel for export.

Risk Management

The practice of identifying, assessing, and controlling threats to an organization's capital and earnings.