Which of the Following Are True of Employee Stock Options

question 20

Multiple Choice

Which of the following are true of employee stock options?

• A) They are commonly valued as though they are regular American options
• B) They are commonly valued as though they are regular American options, but with a reduced life.
• C) They are commonly valued as though they are regular European option
• D) They are commonly valued as though they are regular European options but with a reduced life.

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Definitions:

Retina

A layer of tissue at the back of the eye that senses light and sends visual signals to the brain.

Rhodopsin

Light-sensitive substance found in the rods of the retina; composed of opsin loosely bound to retinal.

Retinal

A form of vitamin A that plays a crucial role in the conversion of light into a signal that can be interpreted by the brain, leading to vision.

Opsin

Protein portion of the rhodopsin molecule; a class of proteins that bind to retinal to form the visual pigments of the rods and cones of the eye.