Executive Stock Options

question 219

Multiple Choice

Executive stock options:

• A) allow the holder the option to buy shares at a specified exercise price during a specified period of time.
• B) allow the holder the option to buy shares at a specified exercise price any time prior to the executive ceasing to be employed by the firm.
• C) are expensed at their intrinsic value.
• D) permit executives to purchase restricted stock.

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Definitions:

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Manufacturer's Warranty

A promise by a manufacturer to repair or replace defective products within a certain period of time after purchase.

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An electric oven that uses microwaves to heat or cook food by causing water molecules in the food to vibrate and produce heat.

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The action of fixing or restoring something that is broken or damaged.