Which of the Following Is True

question 15

Multiple Choice

Which of the following is true?

• A) An employee stock option is usually held to maturity
• B) An employee stock option tends to be exercised earlier than a traded option with the same terms
• C) An employee stock options tends to be exercised later than a traded option with the same terms
• D) Employee stock options are usually exercised as early as possible

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Definitions:

Classical Conditioning

A learning process in which two stimuli are continuously coupled; the response, initially precipitated by the second stimulus, is ultimately precipitated by the first stimulus by itself.

UCS

An acronym for "Unconditioned Stimulus," a stimulus that naturally and automatically triggers a response without prior learning.

CS

Common shorthand for "conditioned stimulus," a term from classical conditioning in psychology that refers to a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

UCR

Unconditioned Response, an automatic response to a stimulus that does not need to be learned.