In 2003,a Company Employee Received an Option to Purchase the Company's

question 28

Multiple Choice

In 2003,a company employee received an option to purchase the company's stock at $45 per share.If the stock is trading at $40 a share in 2005,the employee will most likely:

• A) exercise the option, receiving a gain of $5.
• B) exercise the option, receiving a gain of $40.
• C) would not bother to exercise the options.
• D) be eligible to obtain a price $45 per share.
• E) sell the shares to a third party slightly above the market price.

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Definitions:

Identity Theft

The theft of a form of identification, such as a name, date of birth, or Social Security number, which is then used to access the victim’s financial resources.

Social Security Number

is a unique nine-digit number assigned to U.S. citizens, permanent residents, and certain temporary residents, used for tracking individuals for Social Security purposes and other identification reasons.

Financial Resources

Assets, funds, or capital available to an individual, organization, or government for spending on various needs or investments.

Constitutional Rights

Fundamental rights and freedoms guaranteed to individuals by the constitution of their country.