Aharon Exercises 10 Stock Options Awarded Several Years Ago

question 84

Multiple Choice

Aharon exercises 10 stock options awarded several years ago. The following information pertains to the options: (1) each option gives the employee the right to buy 10 shares, (2) the market price on the grant date was $7, (3) the strike price is $10, and (4) the market price on the exercise date was $15. How much will it cost Aharon to purchase the options on the exercise date?

• A)$90
• B)$500
• C)$700
• D)$1,000

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Definitions:

Desired Goal

An objective, outcome, or state that a person or organization actively seeks to achieve or accomplish.

Health Psychology

A field of psychology that focuses on how psychological, behavioral, and cultural factors contribute to physical health and illness.

Prevention

Actions or measures taken to stop something undesirable, such as disease or accidents, from happening.

Diseases

Medical conditions characterized by abnormal functioning of the body or mind, leading to symptoms, distress, or impairment.