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:

Biochemical

Pertaining to the chemical substances and processes that occur within living organisms.

Biomedical

Relating to the use of natural sciences, particularly biology and physiology, in the practice of clinical medicine.

Psychosomatic Illnesses

Disorders that involve both mind and body where psychological stress can contribute to physical illness.

Biological Factors

Genetic, physiological, and biochemical attributes that can influence an individual's health, behavior, and physical and mental development.