In a Stock Option Plan, If the Market Price of the Stock

question 95

Multiple Choice

In a stock option plan, if the market price of the stock exceeds the exercise price, _____.

• A) employees can then exercise the option and buy the stock
• B) employees have to purchase the stock at the new price
• C) employees have to forfeit their claims to the company shares
• D) employees will make a loss through stock ownership

---

Definitions:

Lateral Thinking

A problem-solving technique that involves looking at situations or issues from a novel or unique perspective.

Alternative Ways

Various methods or approaches to achieve a goal or solve a problem.

Generating Ideas

The creative process of coming up with new concepts, solutions, or approaches.

IDEO Brainstorms

IDEO Brainstorms refer to the creative and collaborative idea generation sessions used by the design firm IDEO, emphasizing a human-centered approach and rapid prototyping.